Despite a drop in the number of initial coin offerings, and a falling price of several crypt currencies, the broader investment market around blockchain and cryptovaluta startups seems stronger than ever. At least today, new figures show this.
Research group Diar, active in blockchain, reports today that blockchain and cryptovaluta start-ups have raised a total of $3.9 billion in venture capital in the first three quarters of this year. That is three times as much as happened in the whole of 2017.
Most of the money went to just a few companies. For example, Bitmain Technologies, which recently announced its intention to enter the market, raised $400 million from an investment round. In addition, DFINITY accounted for 163 million dollars; Base for 133 million dollars and R3 CEV for 122 million dollars. The ten largest investment rounds organised this year together accounted for 1.3 billion dollars in fundraising.
In total, according to Diar, there have been 384 deals so far this year, with more than 2,000 investors. The median is an investment of 2.5 million dollars. That was $1.5 million last year. The conclusion to be drawn from this is that the number of investments is not only increasing, but also that more and more money is being raised from the investments.
The companies that invested the most this year are Andreessen Horowitz, Bain Capital, Blockchain Capital, Digital Currency Group and Pantera. The Digital Currency Group was the main one, with 110 deals this year. American investors are also dominant and together account for 79 percent of all investments. This is followed by the Chinese with 12%, and then South Korea and Singapore with 2% of the investments each.
The increase in fundraising through venture capital instead of ICOs is said to be mainly due to the fact that since the beginning of this year cryptic currency has been increasingly worthless. The majority of all tokens this year are worth 90 percent less than their peak, says Diar.This news article was automatically translated from Dutch to give Techzine.eu a head start. All news articles after September 1, 2019 are written in native English and NOT translated. All our background stories are written in native English as well. For more information read our launch article.