The blockchain technology industry has seen $10B in total all time funding. Let’s analyze the investors making bets into blockchain technology and identify the most active firms.
The graphic below shows blockchain technology investors based on their number of investments into the sector. If an investor participates in two investment rounds in the same company (such as a Series A and Series B), that would qualify as two investments for this graphic.
As the graphic demonstrates, the Digital Currency Group has made the most bets in the blockchain technology sector with 110 investments. BlockChain Capital follows in second place with 58 investments. Examples of companies that Digital Currency Group invested in include Basis, Circle, Ledger, and BitGo. Let’s see which investors make their way onto this list in 2019!
This blog post examines the different components of the blockchain technology ecosystem. We will illustrate what the categories of innovation are and which categories have the most companies. We will also compare the categories in terms of their funding and maturity.
Blockchain Innovations Is the Largest Blockchain Technology Category
Let’s start off by looking at the Sector Map. We have classified 1094 blockchain technology startups into 12 categories that have raised $10 billion. The Sector Map highlights the number of companies in each category. It also shows a random sampling of companies in each category.
We see that Blockchain Innovations is the largest category with 312 companies. These companies are working on distributed ledger technologies, such as smart self-enforcing contracts, cross-blockchain interoperability, and increased transaction speeds. Some example companies in this category include Blockstream, Filecoin, Blockstack, and Ripple.
Let’s now look at our Innovation Quadrant to find out the funding and maturity of these categories in relation to one another.
The Pioneers Quadrant Has the Most Blockchain Technology Categories
Our Innovation Quadrant divides the blockchain technology categories into four different quadrants.
We see that the Pioneers quadrant has the most blockchain technology categories with 8. These categories are in the earlier stages of funding and maturity. The Established quadrant has 2 categories that have reached maturity with less-than-average financing. The Disruptors quadrant contains one category, Mining. This category has acquired significant financing at a young age. The Heavyweights quadrant also has one category, Trust and Verification. This category has reached maturity with significant financing.
We’ve analyzed the blockchain technology categories and their relative stages of innovation. Let’s now look at how they stack up against one another in terms of their total funding versus company counts.
Blockchain Innovation Startups Have the Most Funding
The graph below shows the total amount of venture funding and company count in each category.
As the above graphic implies, the Blockchain Innovations category dominates the sector in total funding with $5.7B. Its funding is almost 5 times the funding of the next category, Exchanges with $1.2B.
Conclusion: The Blockchain Innovations Category Leads Blockchain Technology
As the analysis above demonstrates, Blockchain Innovations leads in total companies and funding. We’ll see how the blockchain technology landscape evolves and develops in the new year!
We previously highlighted that blockchain technology saw its highest Q2 funding ever in 2018. This blog post will take a closer look at the trends within the individual blockchain technology categories. Per our analysis, we can say that the Blockchain Innovations category is the unequivocal funding leader. We’ll discuss this with some charts below.
The Blockchain Innovations Category Leads Blockchain Technology In Q3 Funding
To start off, let’s review the amount of funding raised this quarter per category within blockchain technology.
The above graphic highlights that the Blockchain Innovations category leads the sector in Q3 funding with $0.9B. Its funding is almost 10 times the funding of the next category, Financial Services at $0.1B.
Blockchain Innovations 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.
Let’s now investigate how the blockchain technology categories’ funding compare with each other historically.
The Blockchain Innovations Category Also Leads in All-Time Funding
The graph below shows the all-time funding for the various blockchain technology categories. The Q3 funding and growth rates of these categories are also highlighted.
As the bar graph indicates, the Blockchain Innovations category also leads in total funding at $5.7B. Its funding is almost 5 times the funding of the next category, Exchanges at $1.2B.
In summary, the Blockchain Innovations category is the indisputable funding leader in the sector!
The Mining category leads the sector in Q2 funding
The Blockchain Innovations category dominates the sector in all-time funding
We’ll explain these observations with some graphics and discussions below.
The Mining Category Leads Blockchain Technology In Q2 Funding
To start off, let’s review the amount of funding raised this quarter by each category within blockchain technology.
The above graphic shows that the Mining category leads the sector in Q2 funding with $400M. The Blockchain Innovations category follows in a close second place with $386M. Its funding is almost 3 times higher than that in the next category, Exchanges at $145M.
So we’ve observed how different blockchain technology categories stack up in their Q2 funding. But how do these categories’ funding compare with each other historically? Let’s investigate that in the next section.
The Blockchain Innovations Category Dominates the Sector in All-Time Funding
The graph below shows the all-time funding for different blockchain technology categories. The Q2 funding and growth rates of these categories are also highlighted.
The bar graph indicates that Blockchain Innovations completely dominates the sector with $4.7B in total funding. This is more than four times the funding in the next category, Exchanges at $1.1B.
The Blockchain Innovations 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.
In addition, the line graph shows that the Mining category saw the highest growth rate in Q2 at 102%, thereby more than doubling its funding.
Conclusion: Mining and Blockchain Innovations Are At the Forefront of Blockchain Technology Funding
We’ve discovered that the Mining category leads in Q2 funding and had the highest growth percentage. In addition, the Blockchain Innovations category dominates the sector in all-time funding. It’ll be interesting to see if any other blockchain technology categories will catch up in the rest of 2018.
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 Amounts Shifted Dramatically to ICOs
We’ll start off by examining the annual Blockchain Technology funding amounts 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.
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.
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.