Blockchain Experiences up to 280% Increase in Venture Capital Investment in 2018

December 17, 2018

Regarding a recent report by Diar published on September 30, enterprises working in blockchain and crypto industry has attracted almost triple “traditional” venture capital (VC) investment in the first three quarters of 2018.

As recorded from Pitchbook, blockchain and crypto-related companies have encouraged nearly $3.9 billion in VC capital so far this year, which accounts for 280 percent increase comparing to the figure last year. The rise constitutes of not only the increasing number of deals but also the burgeoning median value of each, growing by over $1 million this year.

VC investment and deal count in blockchain and crypto-related firms, 2013-18. Source: Diar

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

The ten largest deals in 2018 constituted $1.3 billion, nine of which are the representation of traditional equity investments, rather than the acquisition of utility crypto tokens. The exception was the DFINITY token which attracted up to $163 million in total from VC investors Andreessen Horowitz, Hashed, and Polychain Capital.

Inferred from the Pitchbook’s figures, Barry Silbert’s Digital Currency Group (DCG) was taking the lead in investment proliferation from VC sector, concluding exceed 110 deals in blockchain and crypto space this year. DCG outflanked both Blockchain Capital and Pantera Capital, whose combined deals clocked in at 100.

Besides, VC firms Andreessen Horowitz, Danhua Capital, and Future Perfect Ventures were also considered other prominent investors together with “active angels” Naval Ravikant, Tim Draper, Roger Ver, and Barry Silbert.

Apart from such key players, about 2,000 investors have closed deals with at least one blockchain enterprise this year according to the Diar report, and about 2.5% of these have invested in”at least” eight. 52 percent of investors in terms of investor profiles were not exclusively concentrated on blockchain and crypto field but sealed their deals at more diversified portfolios.

At last, Diar also made research on the geographic distribution of the VC capital flowing into blockchain sector, with US-based investors representing the lion’s share at 79 percent, followed by 12 percent by China, and 2 percent by South Korea and Singapore respectively.

As stated in a recent report by Diar, blockchain adaption in the banking industry is proliferated covering from blockchain-exclusive banks built “from the ground up”, banks integrating fiat and crypto services to crypto-related firms securing banking licenses.

Moreover, Korea Investment Partners (KIP) – largest VC enterprise in South Korea has invested in its newborn blockchain startup, specializing supply chain management. KIP is acknowledged for its investments in several high-ranking businesses including Naver – Korea’s largest search engine, LINE – popular Japanese messaging app, together with Kakao – Korean messaging giant.

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