Coinbase Ventures Partner Connor Dempsey published a breakdown of the company’s portfolio in 2021, revealing decentralized finance (DeFi) tied to centralized finance as a top category.
Coinbase Ventures is the venture capital arm of crypto exchange giant Coinbase. According to Dempsey’s post, the company closed just under 150 new deals in 2021, bringing the total number of companies in its portfolio to 250.
DeFi and “CeFi” accounted for around 23% of the total. Significant recent investments in each category include the company’s backing of DeFi wallet startup DeBank and financial advisor-focused crypto investment platform Onramp Invest, respectively.
The second largest category was what the company calls “Web3 protocols and infrastructure,” which accounted for 20%. Investments in “non-fungible tokens (NFTs)/metaverse” come next with 17%. A prominent NFT startup that the venture capital firm has recently backed is music platform Royal. During this time, Coinbase plans to launch its own NFT marketplace.
Investments in platform and developer tools – for example, crypto tax reporting platform CoinTracker – accounted for 15% of Coinbase Ventures’ portfolio in 2021. The remaining 2% went to unclassified recipients.