Blockchain Technology Seeing New Paradigm With Dramatic Shift to ICOs

With all the ICO buzz in the Blockchain sector, we dove into our Blockchain Technology report and research platform to examine how significant this new financing model has been. It comes as no surprise that we can conclude that the Blockchain Technology sector is experiencing a new financing paradigm.

This conclusion comes from two takeaways:

  • Funding amounts shifted dramatically to ICOs
  • Funding counts saw a drop in early-stage events with the emergence of ICOs

We’ll explain these takeaways with some graphics that show Blockchain Technology funding activity by round.

To help set the stage, the graphic below illustrates Blockchain Technology funding amounts over time. As you can see, the sector’s overall funding skyrocketed in the past few years. Additionally, Q1 2018 is the best Q1 on record.

Blockchain Technology Funding by Quarter
Blockchain Technology Funding by Quarter

Blockchain Technology Funding Amounts Shifted Dramatically to ICOs

We’ll start off by examining the annual Blockchain Technology funding amounts by round.

Blockchain Technology Funding Amount by Round
Blockchain Technology Funding Amount by Round

As shown in the graph, the funding amounts in most rounds rose gradually from 2012 to 2015. From 2015 onwards, funding amounts shifted dramatically to ICO events. In fact, the funding amount in ICO events amounted to almost $2B in 2017.

We’ll now look at the Blockchain Technology funding amount by round as a percentage of the total, which shows changes independent of the total size.

Blockchain Technology Funding Amount Percentages
Blockchain Technology Funding Amount Percentages

The above graph supports our previous observation that funding amounts saw substantial shifts to ICOs from 2015 to 2017. Initially, early-stage events accounted for almost all of the sector’s funding amounts from 2012 to 2015. In 2016, ICOs emerged on the horizon and took over 27% of the sector’s funding amounts. By 2017, there was a complete shift, with ICO events dominating the sector’s funding amounts at 73%.

So we see that the funding amount graphs indicate a drastic shift to ICO events from 2015 to 2017. Would the funding event count graphs show the same trend? Let’s examine them in the next section to find out.

Blockchain Technology Funding Counts Saw Emergence of ICOs

Let’s now look at the annual Blockchain Technology funding event counts. The below graph shows the Blockchain Technology funding counts by round as a percentage.

Blockchain Technology Funding Count Percentages
Blockchain Technology Funding Count Percentages

This graph confirms our previous observations. Specifically, ICOs represented 3% of the sector’s funding counts in 2016 and grew to 35% in 2017. As a result, the funding counts in most early-stage rounds decreased by 2017.

Conclusion: The Blockchain Technology Sector Is Seeing a New Paradigm

In conclusion, we see that Blockchain Technology funding rounds and events shifted significantly to ICOs from 2015 to 2017.

To learn more about our complete Blockchain Technology report and research platform, visit us at www.venturescanner.com or contact us at info@venturescanner.com.

Blockchain Technology Startup Highlights  – Q1 2018

Here is our Q1 2018 summary report on the Blockchain Technology startup sector. The following report includes an overview, recent activity, and a category deep dive.

To learn more about our complete Blockchain Technology report and research platform, visit us at www.venturescanner.com or contact info@venturescanner.com.

Blockchain Technology Sector Overview – Q1 2018

The Blockchain Technology sector has seen a lot of buzz in the news, as the price of cryptocurrencies has seen large ups and downs over the last year.

What are the different components of Blockchain Technology and how do they make up this startup ecosystem? On our Blockchain research platform, we have classified the companies into functional categories. This blog post examines these categories and how they compare with one another through a series of graphics.

Blockchain Innovations Is the Largest Category

Let’s start off by looking at the Sector Map for the Blockchain Technology sector. As of March 2018, we have classified 1,007 Blockchain Technology startups into 12 categories which raised $6 billion in funding. The Sector Map highlights the number of companies in each category. It also shows a random sampling of companies in each category.

Blockchain Technology Sector Map
Blockchain Technology Sector Map

We can see from the Sector Map above that Blockchain Innovations is the largest category with 244 companies. This category contains companies that are working on blockchain distributed ledger technologies. Examples include increased speed for financial transactions, smart self-enforcing contracts, and cross-blockchain interoperability. Some example companies in this category include Blockstream, Filecoin, Blockstack, and Ripple.

We have seen what the different categories in Blockchain Technology are and how many companies are within each category. What about their funding and maturity in relation to one another? Let’s look at our Innovation Quadrant to find out.

Blockchain Technology Categories Are Evenly Distributed Among the Four Quadrants

Our Innovation Quadrant divides the Blockchain Technology categories into four different quadrants.

Blockchain Technology Innovation Quadrant
Blockchain Technology Innovation Quadrant

We can see from our Innovation Quadrant above that the categories are rather evenly distributed among the four quadrants. The Pioneers quadrant has the most categories at 4. The Disruptors quadrant and the Established quadrant each have 3 categories. The Heavyweights quadrant has 2 categories.

We’ve now seen how the Blockchain Technology sector is categorized. We’ve also seen the relative stages of innovation for those categories. How do these categories stack up against one another in a holistic view? Let’s look at the Total Funding and Company Count Graph.

Blockchain Innovations Category Has the Most Funding and Company Count

The graph below shows the total amount of venture funding and company count in each Blockchain Technology category.

Blockchain Technology Total Funding and Company Count
Blockchain Technology Total Funding and Company Count

We can see from the graph above that the Blockchain Innovations category leads the sector in total funding at $3 billion. It also has the most companies in the sector at 244 companies.

Conclusion: Blockchain Innovations Leads the Sector

The graphics above show that the Blockchain Innovations category leads the sector in funding and company count. The other categories have large potential for growth and development in this nascent market. It will be interesting to see how this sector turns out in 2018.

What are your thoughts on this? Let us know in the comments section below.

To learn more about our complete Blockchain Technology report and research platform, visit us at www.venturescanner.com or contact us at info@venturescanner.com.

Blockchain Technology Startup Highlights  – Q4 2017

Here is our Q4 2017 summary report on the Blockchain Technology startup sector. The following report includes an overview, recent activity, and a category deep dive.

To learn more about our complete Blockchain Technology report and research platform, visit us at www.venturescanner.com or contact info@venturescanner.com.

Blockchain Technology Exits by Category and by Year – Q3 2017

The following graphs highlight the exit activity in the Blockchain Technology sector. The graphics include data through August 2017.

Blockchain Technology Exit Activity by Category
Blockchain Technology Exit Activity by Category

The above graph summarizes the number of exits (acquisitions and IPOs) in each Blockchain Technology category. The Bitcoin Exchanges category leads the sector with 10 acquisitions. The Bitcoin Data category is the runner-up with 8 acquisitions.

Blockchain Technology Exit Activity by Year
Blockchain Technology Exit Activity by Year

The above graph summarizes the number of exits (acquisitions and IPOs) in the Blockchain Technology sector by year. 2016 leads the sector with 14 acquisitions and 1 IPO. 2015 is the runner-up with 13 acquisitions and 1 IPO.

We are currently tracking 970 Blockchain Technology companies in 12 categories across 74 countries, with a total of $4.5 Billion in funding. Click here to learn more about the full Blockchain Technology market report.

Age by Blockchain Technology Category – Q3 2017

The following graph shows the average age by category in the Blockchain Technology sector. The graphic includes data through August 2017.

Age by Category in Blockchain Technology
Age by Category in Blockchain Technology

The above graph summarizes the average age of companies in each Blockchain Technology category. The Bitcoin Trust category has the highest average age at around 5.5 years. The Bitcoin Infrastructure category is the runner-up with an average age of 5.2 years. On the other hand, Blockchain Innovations is the youngest Blockchain Technology category with an average age of 3.6 years.

We are currently tracking 970 Blockchain Technology companies in 12 categories across 74 countries, with a total of $4.5 Billion in funding. Click here to learn more about the full Blockchain Technology market report.

Where in the World Are Blockchain Technology Startups? – Q3 2017

The analyses below summarize where Blockchain Technology innovations are occurring. The graphic includes data through September 2017.

Blockchain Technology Company Count by Country
Blockchain Technology Company Count by Country

The above map shows the number of Blockchain Technology companies located in different countries. The United States ranks as the top country with around 350 companies.

Blockchain Technology VC Funding by Country
Blockchain Technology VC Funding by Country

The above map shows the amount of total Blockchain Technology startup venture capital funding in different countries. The United States has the most VC funding at around $2B.

We are currently tracking 963 Blockchain Technology companies in 12 categories across 74 countries, with a total of $4.1B in funding. Click here to learn more about the full Blockchain Technology market report.