The year 2021 marked a transformative period in the blockchain and cryptocurrency landscape. Decentralized Finance (DeFi) continued its explosive growth, with total value locked (TVL) reaching unprecedented highs. Innovations emerged rapidly across sectors, while GameFi, NFTs, and the metaverse captured mainstream attention. Emerging blockchains like Solana, Fantom, and Avalanche gained significant traction, reshaping the ecosystem.
After a relatively slow 2020, crypto venture capital rebounded strongly in 2021. The number of investments in the first half alone surpassed the full-year total from the previous year. This surge brought increased focus on the performance of leading crypto venture capital firms. In this comprehensive analysis, we evaluate 14 top-tier investment institutions based on their portfolio performance, sector distribution, and return on investment (ROI).
All price data referenced in this article are denominated in USDT.
Overall Market Performance
Among the 14 firms analyzed, Andreessen Horowitz (a16z), Three Arrows Capital, and Binance Labs led in terms of the number of launched projects within their portfolios. On the ROI front, AXS, SOL, and MATIC emerged as standout performers.
Notably, three firms—Blockchain Capital, #HASHED, and Sequoia Capital—achieved a 100% positive return rate across their listed assets. Ten of the 14 firms reported positive returns exceeding 70%, while only one fell below 50%. Approximately 70% of these firms had at least one "hundred-x" (100x) performer in their portfolios.
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Individual Firm Performance Analysis
Andreessen Horowitz (a16z)
a16z stands as a dominant force in both traditional tech and crypto investing. With stakes in Facebook, Twitter, and Coinbase—where it became the largest external shareholder—the firm has cemented its status as a market leader. Its crypto fund now exceeds $3 billion, backing major projects including Uniswap, MakerDAO, Compound, Solana, and Arweave.
In 2021:
- 63 launched tokens in portfolio — the highest among all firms.
- Over 75% positive return rate
- Top performer: AXS (+20,240%)
- Three 100x assets: AXS, MATIC, and SOL
- Sector focus: 57.1% DeFi, 22.2% public chains, 11.1% Web3
While heavily invested in DeFi and infrastructure, a16z showed limited exposure to GameFi and NFTs during this period.
Unlaunched projects: 37
Top unlaunched categories: Infrastructure (46%), followed by GameFi and Web3 (8 each)
DCG (Digital Currency Group)
As the parent company of Grayscale and CoinDesk, DCG operates as a key incubator in the crypto space with over 100 portfolio companies.
In 2021:
- Nearly 30 launched tokens
- Over 90% positive return rate
- Best performer: SOL (+12,966%)
- Majority of gains concentrated between 1x–10x (55%)
Sector breakdown:
- 56% DeFi, 28% public chains
- Combined DeFi and public chain investments account for 84%
Unlaunched projects: 55
Primary focus: Infrastructure (61.8%), followed by Web3 and DeFi
Paradigm
Co-founded by Fred Ehrsam (Coinbase) and Matt Huang (ex-Sequoia), Paradigm combines deep technical insight with elite financial backing—reportedly supported by Yale University and Sequoia Capital.
In 2021:
- Tracked 10 launched assets
- 90% positive return rate
- Top gainer: FTT (+635%)
- Most returns fell within the 1x–10x range (60%)
- Smallest negative return among all firms: only -20%
Sector focus:
- 63.6% DeFi, with additional investments in infrastructure, public chains, and Web3
Unlaunched projects: 27
Infrastructure dominates: 74% (20 projects)
Multicoin Capital
Known for early bets on Solana and other high-growth protocols, Multicoin is backed by Binance and prominent Silicon Valley investors.
In 2021:
- 24 launched tokens
- 75% positive return rate
- Highest return: SOL (+12,966%)
- Worst performer: ICP (-89%)
Sector allocation:
- 48% DeFi, 20% public chains, 20% Web3
Similar to a16z, Multicoin favors foundational layers of the crypto stack.
Unlaunched projects: 24
DeFi leads with 33.3%, followed by Web3 and infrastructure
NGC Ventures
Established in late 2017 with ~$500M under management, NGC focuses on global blockchain innovation and NEO ecosystem development.
In 2021:
- 19 launched tokens
- 73% positive return rate
- Peak return: SOL (+12,966%)
- Worst loss: WSOTE (-99%)
Sector distribution:
- 42% public chains, 21% DeFi
- Also active in GameFi, Web3, and infrastructure
Unlaunched projects: 6
Mostly infrastructure (5), plus one GameFi project
Three Arrows Capital
Based in Singapore, this hedge fund was known for aggressive positioning and macro-driven strategies.
In 2021:
- Second-largest portfolio size after a16z
- 69% positive return rate
- Top performer: AXS (+20,240%)
- High concentration of mid-tier winners (10x–50x)
Sector focus:
- 82% DeFi, indicating extreme specialization
- Minimal exposure to other verticals
Unlaunched projects: 8
Even split between infrastructure and DeFi
Polychain Capital
One of the earliest native crypto hedge funds, Polychain has backing from a16z and Danhua Capital.
In 2021:
- 85% positive return rate
- Best performer: AVAX (+3,217%)
- No 100x assets; most returns between 1x–10x (47%)
Sector mix:
- 42.1% DeFi, 36.8% public chains
Unlaunched projects: 45
Infrastructure (51%), DeFi (33%)
Alameda Research
Founded by Sam Bankman-Fried, Alameda was both a trading firm and investor.
In 2021:
- Lowest positive return rate: 48%
- Top gain: only +398%
- Majority of returns between 1x–3x (40%)
Sector focus:
- 88% DeFi, minimal diversification
Unlaunched projects: 19
Infrastructure (42%), followed by DeFi and GameFi
Coinbase Ventures
The venture arm of Coinbase invests broadly in open financial systems.
In 2021:
- 61% positive return rate
- Two 100x assets: LUNA (+12,400%), MATIC (+16,429%)
- Worst performer: BTRST (-91%)
Sector breakdown:
- 61.1% DeFi, remainder split across Web3 and public chains
Unlaunched projects: 60
Infrastructure dominates at 71%
Blockchain Capital
A pioneer in Bitcoin-focused venture capital, early bets include Coinbase and Ripple.
In 2021:
- Achieved 100% positive return rate
- Best performer: ROSE (+776%)
- All gains between +42% to +776%
Sector distribution:
- Balanced across DeFi, public chains, and Web3
- No GameFi or NFT investments tracked
Unlaunched projects: 20
Infrastructure (60%), DeFi (30%)
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HASHED
South Korea’s largest crypto fund, with strong influence across Asia and into Silicon Valley.
In 2021:
- Achieved 100% positive return rate
- Two 100x assets: SAND (+158x), AXS (+202x)
- Largest gain: AXS (+20,240%)
Sector focus:
- 44.4% DeFi, notable GameFi presence (2 projects)
Unlaunched projects: 20
Infrastructure leads at 30%
Sequoia Capital
A global VC powerhouse expanding aggressively into crypto.
In 2021:
- Achieved 100% positive return rate
- One 100x asset: MATIC (+164x)
- Gains spread across multiple tiers
Sector allocation:
- Equal representation in DeFi and public chains (3 each)
- Also invested in Web3 and infrastructure
Unlaunched projects: 9
Infrastructure dominates at 55.5%
Animoca Brands
A Hong Kong-based leader focused exclusively on GameFi and metaverse ventures.
In 2021:
- Smallest portfolio size
- Positive return rate: 57%
- Top performer: AXS (+20,240%)
Sector focus:
- 71.4% GameFi, no DeFi investments
- Strong conviction in gaming’s blockchain future
Unlaunched projects: 5
Web3 dominates at 80%
Binance Labs
The incubation arm of Binance supports entrepreneurs across the blockchain ecosystem.
In 2021:
- Nearly 90% positive return rate
- Most 100x assets among all firms: ALICE, LUNA, MATIC, AXS (four total)
- Only two underperforming assets (<1x)
Sector strategy:
- Highly diversified—no single sector dominates
- Strong presence in infrastructure, DeFi, GameFi, public chains
Unlaunched projects: 8
Infrastructure (50%), rest in NFTs, Web3, GameFi
Key Insights & Trends
Core Keywords
Crypto venture capital, blockchain investment, DeFi projects, GameFi, public blockchain, Web3, portfolio performance, high-return crypto assets
These keywords reflect the central themes of institutional behavior and market dynamics in 2021.
Sector Preferences
Most firms prioritized DeFi and public blockchains, recognizing their foundational role. Only Animoca Brands showed dominant specialization in GameFi. Despite rising interest in metaverse and gaming ecosystems, most GameFi projects remained pre-launch due to longer development cycles.
Return Distribution
- ~25% of assets returned less than 1x
- ~40% delivered returns between 1x–10x
- ~10% achieved gains between 10x–100x
- Over 70% of firms had at least one 100x asset
Top performers included AXS (+20,240%), MATIC (+16,429%), SOL (+12,966%), LUNA (+12,400%), SAND (+158x), and ALICE (+123x).
a16z invested in three of these six hundred-x assets—the most among all firms.
Frequently Asked Questions (FAQ)
Q: Which crypto VC had the best overall performance in 2021?
A: While several firms achieved a perfect positive return rate (Blockchain Capital, #HASHED, Sequoia), Binance Labs stood out by having four different 100x assets—the highest count among all investors.
Q: Why did some top VCs miss major winners like AXS or SOL?
A: Despite broad coverage, even leading firms can overlook breakout projects due to timing, regional focus, or strategic priorities. For example, some were more focused on core infrastructure than gaming or application layers.
Q: What does a high concentration in infrastructure mean for future returns?
A: Infrastructure investments often take longer to mature but can yield outsized returns once networks scale. Firms like Coinbase Ventures and DCG are positioning for long-term growth through deep infrastructure pipelines.
Q: How important is diversification in crypto portfolios?
A: Diversification helped balance risk. Firms overly concentrated in one sector—like Alameda Research in DeFi—faced higher volatility when specific segments underperformed.
Q: Can past performance predict future success?
A: While strong historical returns indicate skillful selection, market conditions evolve rapidly. Continuous research and adaptability are critical for sustained success.
Q: What role do unlaunched projects play in evaluating a VC’s potential?
A: Unlaunched portfolios represent future upside. Firms with large pre-launch pipelines—such as DCG (55) or Coinbase Ventures (60)—may see significant gains as these projects launch in coming years.
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