Overview of active crypto VC institutions:
According to the list compiled by Block123 in cooperation with Chainnews (2020-2021 data), 100 of the most active crypto VC institutions worldwide were screened based on investment frequency, project quality, and other indicators. Notable institutions include:
a16z (Andreessen Horowitz): Invested in Coinbase, OpenSea, etc., launched a $1.6 billion crypto fund in 2021, yielding considerable returns.
Pantera Capital: Focused on blockchain and crypto assets, invested in Ripple, Bitstamp, etc., with extremely high early Bitcoin investment returns.
Polychain Capital: Invested in Polkadot, Uniswap, etc., managing over $1 billion in assets.
Paradigm: Invested in FTX, Compound, etc., raised $2.5 billion in 2021, focusing on DeFi and Web3.
Coinbase Ventures: Backed by the Coinbase exchange, invested in numerous early-stage projects, such as The Graph.
These institutions have higher overall returns due to portfolio diversification and early market entry, but specific profit data is not publicly disclosed.
Indirect indicators of investment returns:
FTX financing case: In 2021, FTX completed $900 million in financing, with a valuation reaching $18 billion, with participation from institutions like Paradigm, and a doubling of valuation in the short term indicating high return potential.
Coinbase IPO: Early investors in Coinbase, such as a16z, achieved multiples of returns during the 2021 IPO.
DeFi boom: Between 2020 and 2021, DeFi projects (such as Uniswap, Aave) surged, and investment institutions like Polychain and a16z earned substantial profits from early positioning.
VC institutions in Chinese-speaking regions:
NGC Ventures: Invested in Solana, Algorand, etc., performed outstandingly in 2020.
HashKey Capital: Focused on the Asian market, invested in Filecoin, etc.
Distributed Capital: Founded by Shen Bo, invested in VeChain, Nervos, etc.
These institutions have significant influence in Chinese-speaking regions, but specific return data is less disclosed, relying more on token performance after project launch.
Challenges and limitations:
Data opacity: VC profit data (like IRR or MOIC) is usually not disclosed, and rankings are often based on investment activity rather than actual returns.
Market volatility: The high volatility of the crypto market makes it difficult to assess returns in real-time. For example, many VC portfolios lost value during the 2022 bear market.
Exit mechanisms: VC profits depend on IPOs, mergers, or token listings, with long and uncertain exit cycles.
Recommended institutions (based on activity and influence)
The following are inferred top crypto VCs based on investment activity and market reputation (not a strict ranking of profits):
a16z Crypto: Large fund + successful exit cases (like Coinbase).
Pantera Capital: Long-term focus on crypto, significant early investment returns.
Polychain Capital: Extensive layout in DeFi and Layer 1 projects.
Paradigm: Investments in high-valuation projects (like FTX).
NGC Ventures: Strong influence in Chinese-speaking regions, good growth potential in the portfolio.
