Venture Capital Investment in Blockchain Up Nearly 300 Percent in 2018

Venture Capital Investment in Blockchain Up Nearly 300 Percent in 2018

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According to a recently published Diar report, venture capital investments in crypto and blockchain companies have nearly tripled in the first three quarters of 2018 from that of 2017.

Diar references data from Pitchbook that reveals that blockchain and crypto-related companies have raised approximately $3.9 billion in venture capital this year. This figure represents a 280 percent increase compared to the amount of venture raised in 2017.

There are nearly 2,000 investors who have invested in at least one blockchain company, with Digital Currency Group as the most active.

The most involved traditional venture capital firms in the crypto space are Andreessen Horowitz, Danhua Capital, and Future Perfect Ventures. The most enthusiastic angels in the space are Tim Draper, Naval Ravikant, Barry Silbert, and Roger Ver.

The 50 most active backers have contributed to at least eight blockchain companies while those not exclusively focused on blockchain companies made approximately 52 percent of investments.

Not only has funding increased, but the number of deals this year has doubled. Median deal size of crypto and blockchain ventures has increased by more than $1 million this year.

VC median blockchain investment, 2013-18. Source: Diar

Who is getting funded?

Of the top ten largest blockchain and crypto deals this year, nine out of ten deals have featured traditional equity investment, while Dfinity was the only one that presented a native utility token. Bitmain, the Bitcoin mining goliath, had the largest round in 2018 at $400 million led by Sequoia Capital. Basis, R3, Circle, Seba Crypto, Ledger, Paxos, Uphold, and Figure were also among the largest 2018 venture capital deals.

Where is the funding coming from?

The United States made up the largest portion of venture capital action in blockchain and crypto companies with 79 percent of the activity. China (12 percent), South Korea (2 percent) and Singapore (2 percent) comprise the remainder.

Posted In: Adoption, Investments

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