Blockchain and Crypto VC Investments Up 280 Percent in 2018

- October 2nd, 2018

Research from Diar shows that blockchain and cryptocurrency companies have raised almost US$4 billion through venture capital investments — an increase of 280 percent from the same period the previous year.

While 2018 has been an arguably challenging — yet exciting — year for the blockchain and cryptocurrency spaces, interest in these sectors is at an all-time high.

A report issued by Diar on September 30 shows that venture capital (VC) investments in blockchain and cryptocurrencies has soared 280 percent in the first three quarters of 2018 compared to the same time last year.

The research outlet used data compiled by Pitchbook, which noted blockchain and cryptocurrency-related companies have risen roughly US$3.9 billion in the first nine months of the year.

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According to the report, the average deal size of blockchain and cryptocurrency investments has also increased by more than US$1 million so far this year with the combined total of the 10 biggest deals of the year amounting to a staggering US$1.3 billion.

Diar said nine of these deals represented traditional equity investments while only one of them–from DFINITY–was done through utility crypto tokens.

The report shows that Barry Silbert’s Digital Currency Group (DCG) was “by far” the most active VC investor with an estimated 110 deals closed across the blockchain and cryptocurrency sectors. Followed by DCG was Blockchain Capital and Pantera Capital with 100 deals split between the two.

Traditional VC firms that were the most active according to the report included Andreessen Horowitz, Danhua Capital and Future Perfect Ventures.

In addition to these top investors, Diar said approximately 2,000 investors notched a deal with at least one blockchain company so far in 2018. The research firm analyzed 50 of the most active investors, which Diar said each has invested into at least eight blockchain companies.

While 52 percent of investments in the space so far in 2018 have been done by investors who are not solely focused on blockchain, these investments accounted for a more diverse portfolio.

Diar’s report also examined the location of these VC blockchain investments. According to its findings, the US leads with a staggering 79 percent, followed by China at 12 percent and then South Korea and Singapore both at two percent.

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Securities Disclosure: I, Jocelyn Aspa, hold no direct investment interest in any company mentioned in this article.

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