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With At Least $1.3 Billion Invested Globally In 2018, VC Funding For Blockchain Blows Past 2017 Totals

Although bitcoin and blockchain technology may not take up quite as much mental bandwidth for the general public as it did just a few months ago, companies in the space continue to rake in capital from investors.

One of the latest to do so is , which recently announced led by bitcoin mining hardware manufacturer . Other participating investors include , , , , , , , and .

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This round vaults Circle into an exclusive club of crypto companies that are valued, in U.S. dollars, at $1 billion or more in their most recent venture capital round. According to 蹤獲弝け data, Circle was valued at $2.9 billion pre-money, up from a which closed in May 2016. According to 蹤獲弝け data, only and a mobile-first stock trading platform which recently made a big push into cryptocurrency tradingwere in the crypto-unicorn club, which Circle has now joined.

But thats not the only milestone for the world of venture-backed cryptocurrency and blockchain startups.

Back in February, 蹤獲弝け News predicted that the amount of money raised in old-school venture capital rounds by blockchain and blockchain-adjacent startups in 2018 would surpass the amount raised in 2017. Well, its only May, and it looks like the prediction panned out.

In the chart below, youll find worldwide venture deal and dollar volume for blockchain and blockchain-adjacent companies. We purposely excluded ICOs, including those that had traditional VCs participate, and instead focused on venture deals: angel, seed, convertible notes, Series A, Series B, and so on. The data displayed below is based on reported data in 蹤獲弝け, which may be subject to reporting delays, and is, in some cases, incomplete.

A little more than five months into 2018, reported dollar volume invested in VC rounds raised by blockchain companies surpassed 2017s totals. Not just that, the nearly $1.3 billion in global dollar volume is greater than the reported funding totals for the 18 months between July 1, 2016 and New Years Eve in 2017.

And although Circles Series E round certainly helped to bump up funding totals year-to-date, there were many other large funding rounds throughout 2018:

  • , a purported consumer-ready blockchain service set to launch in June.
  • for Paris-based secure hardware wallet-maker .
  • raised by , which claims to use two hyped technologiesblockchain and artificial intelligenceto analyze and protect genomic data.
  • for , a blockchain analysis platform.

There were, of course, many other large rounds over the past five months. After all, we had to get to $1.3 billion somehow.

All of this is to say that investor interest in the blockchain space shows no immediate signs of slowing down, even as the price of bitcoin, ethereum, and other cryptocurrencies hover at less than half of their all-time highs. Considering that regulators are still figuring out how to treat most crypto assets, massive price volatility, and dubious real-world utility of the technology, it may surprise some that investors at the riskiest end of the risk capital pool invest as much as they do in blockchain.

Notes On Methodology

Like in our February analysis, we first created a list of companies in 蹤獲弝けs , , , , and categories. We added to this list any companies that use those keywords, as well as digital currency, utility token, and security token that werent previously included in the above categories. After de-duplicating this list, we merged this set of companies with funding rounds data in 蹤獲弝け.

Please note that for some entries in 蹤獲弝けs round data, the amount of capital raised isnt known. And, as previously noted, 蹤獲弝けs data is subject to reporting delays, especially for seed-stage companies. Accordingly, actual funding totals are likely higher than reported here.

iStockPhoto / mustafahacalaki

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