In brief

  • Digital Currency Group's investments are ticking along despite the global coronavirus pandemic.
  • DeFi was the big hitter this year.
  • Rather than hurt, the pandemic has helped the crypto industry, according to DCG.

Digital Currency Group, a huge crypto VC firm that counts Abra, BitGo, Coinbase and Coindesk among its 150+ investments, today published the results of a survey that asked the founders and CEOs whom it had funded which way the wind blows.

The report found that 50% of respondents said they’d outperformed projections for the start of the year and that 66% of the companies surveyed had increased their headcount this year. And although the pandemic has brought its troubles, 35% plan to further increase their headcount this year—remote working is in the cards.

Respondents said that the “most bullish crypto development” this year was decentralized finance, the slew of non-custodial financial products into which investors poured billions of dollars this year.

Growth by sector within crypto. Image: DCG

And while the global recession threatens millions with poverty and stands to decimate populations, this is one of the “main macro crypto adoption drivers.” About 60% of respondents said that “trustless, inclusive financial systems” were the biggest opportunity for the industry.

Macro crypto adoption drivers, per Digital Currency Group survey. Image: DCG

However, 60% of the executives surveyed said they’d like to raise money this year, but only 20% have so far. This is due to the pandemic: “Venture money has seemingly flocked to the crisis’ winners, while waiting for tangible signs that the harder-pressed will see relief,” wrote DCG in its report.

Funding trends. Image: DCG

Of the projects that delayed fundraising, 36% have delayed fundraising indefinitely. Still, 46% are confident that they’ll raise money before the year’s end.

“2020 has been turbulent for everyone, but for the crypto industry, it will be remembered as a defining opportunity,” said Casey Taylor, VP of Network & Development at DCG, in a statement. “The industry is not only intact, but saw validation and strong growth.”