The journey of crypto startups began with Bitcoin, the first and most well-known cryptocurrency, created in 2009. Bitcoin introduced the concept of a decentralized digital currency, sparking curiosity and innovation. By 2014, this interest started to translate into significant financial backing for new ventures aimed at exploring and expanding the possibilities of blockchain technology.

Blockchain is the technology that underpins cryptocurrencies. It is a secure and transparent way to record transactions, making it ideal for a range of applications beyond just digital money. Startups began to use blockchain for things like supply chain management, voting systems, and secure digital identities. This broad potential attracted investors who saw opportunities for high returns.

As more investors got involved, the amount of money flowing into crypto startups grew rapidly. In the early years, funding came mainly from venture capital firms, which provide money to new companies in exchange for a share of ownership. These firms were eager to get in on the ground floor of what they saw as the next big thing in tech.

One of the key drivers of investment was the rise of Initial Coin Offerings (ICOs). Similar to an Initial Public Offering (IPO) where a company sells shares to the public, an ICO allows a company to sell tokens that can be used within their platform or traded on the open market. ICOs provided startups with a new way to raise large amounts of money quickly. Some ICOs raised millions of dollars in minutes, drawing even more attention to the crypto space.

However, the ICO boom also brought challenges. Many ICOs were launched by companies that did not have solid business plans or viable products. This led to scams and failures, causing some investors to lose money. In response, regulatory bodies around the world started to scrutinize the crypto market more closely, implementing rules to protect investors and ensure the legitimacy of new projects.

Despite these setbacks, the flow of money into crypto startups did not slow down. Instead, it evolved. Investors became more discerning, looking for companies with strong teams, clear use cases, and innovative technologies. The focus shifted from speculative ICOs to more traditional funding methods like venture capital and private equity.

By 2020, the COVID-19 pandemic accelerated the adoption of digital technologies, including cryptocurrencies. People and businesses sought out digital solutions for transactions and investments, pushing the demand for crypto-related services. Startups developing crypto wallets, exchanges, and payment systems saw increased interest and funding.

One significant area of growth has been decentralized finance (DeFi), which uses blockchain technology to recreate traditional financial systems like lending and borrowing without intermediaries like banks. DeFi platforms have gained massive popularity, attracting billions of dollars in investment and providing users with new ways to earn interest, trade assets, and access loans.

The rise of non-fungible tokens (NFTs) also fueled investment in crypto startups. NFTs are unique digital assets that represent ownership of a specific item, such as digital art or collectibles. The market for NFTs exploded, with some pieces selling for millions of dollars. Startups focused on creating, trading, and managing NFTs received substantial funding as a result.

Today, the crypto industry is more diverse and robust than ever. Startups are working on projects that range from improving blockchain scalability and security to creating new applications for digital currencies in gaming, healthcare, and beyond. The total funding hitting the $100 billion mark signifies the confidence investors have in the long-term potential of cryptocurrency and blockchain technology.