In the heat of the rise of bitcoin and the cryptocurrency market, companies that rely on blockchain technology, the chain of blocks that writes cryptocurrency transactions, have received a rain of millions in the period from August 2020 to July 2021. Investment activity has catapulted more than 500%, coinciding with the growth of bitcoin in the last 12 months, when it went from $ 11,000 to the all-time high of 65,000 in mid-April 2021.
After 2019 and part of 2020 were two difficult years for blockchain companies looking to attract investment and expand their business, investors flocked to this sector in 2021. In addition, the entrepreneurial activity of companies, especially financial ones, that They base their business on the blockchain and smart contracts, it has catapulted. By allowing digital information to be distributed but not copied, the blockchain technology created the foundations of the new kind of internet. Although initially invented for the cryptocurrency bitcoin, by improving online security and streamlining fundraising and payment options, this technology was adopted by many companies from different industries.
In the first trimester, blockchain-focused startups raised around $ 2.9 billion, more than in full year 2020. Strong investment activity continued in the second quarter of the year, with companies raising another $ 4.1 billion, according to data from Crunchbase.
Data from the data analytics platform shows that 2018 was a record year for investment activity in the blockchain market, with companies raising around $ 10.7 billion in funding rounds that year. However, the next two years brought a significant slowdown in venture capital funding.
In 2019, blockchain companies raised $ 4.3 billion, and the amount of funding accumulated amounted to $ 20 billion that year. However, statistics show that 2020 brought even less fresh capital, with companies raising just $ 2.4 billion.
Instead, Crunchbase shows that blockchain startups raised around $ 8 billion since August last year, a staggering 515% increase compared to the period a year ago, and 20% more than in 2019 and 2020 combined. .
THE US STARTUPS, LEADING
Data compiled by Crunchbase shows that American blockchain startups have raised a total of $ 12.5 billion in the period 2018-2021, more than European and Asian companies combined.
In contrast, European companies reached $ 6.1 billion in total funding, half the value of their US counterparts, ranking as the second most important region globally. Asian blockchain companies follow with $ 5.4 billion, respectively.
If the type of financing is analyzed, initial coin offering is the most popular way to raise fresh capital. Statistics show that blockchain companies have raised $ 9.3 billion through ICOs so far, more than any other type of funding.
Series A funding rounds have so far brought in about $ 3.8 billion. Series B and Series C funding rounds follow, with $ 2.6 billion and $ 2.4 billion, respectively.