A report released by research firm CB Insights found that equity financing has significantly outpaced Initial Coin Offerings (ICOs) as the dominant form of financing in the blockchain space.
While the largely unregulated ICO boom of 2018 raised $ 7.8 billion, initial funding for the supply of parts fell more than 95% to raise $ 371 million in 2019. In contrast, funding stock raised $ 2.8 billion last year.
The report also notes the rise of decentralized finance (DeFi), noting that there are currently more than $ 1 billion in assets on DeFi platforms – up from $ 300 million in January 2019.
Crypto companies are a major source of DLT funding
In 2019, 807 venture capital agreements were signed, down slightly from 822 in 2018. However, the total amount raised fell by about 30%, from $ 4.26 billion in 2018 to 2, $ 79 billion last year.
VC activity is up sharply from 2017 – which saw $ 1.25 billion raised compared to 297. However, the average amount collected by blockchain companies was higher in 2017 with 4.22 million dollars – versus 3.45 million dollars in 2019.
The data also demonstrates “the commitment of cryptocurrency companies to finance their own ecosystems,” with NEO Global Capital and Coinbase Ventures including the two most active VCs in space in 2019.
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Likewise, as hedge fund investment in blockchain increases, CB Insights allocates funding to funds that specialize in cryptocurrencies.
Blockchain funding share shrinks year over year
Last year, 53% of global venture capital funding in distributed ledger technology (DLT) companies was made in the United States and China.
As the combined share of Chinese blockchain funding has returned to the same level as in 2015, investment has gradually left the United States. in China since 2015.
In 2015, the United States blockchain financing represented 51% of the world total, against 2% in China. In 2019, the United States accounted for 31% while China increased to 22%.
However, 2019 also saw an increase in funding for emerging blockchain centers, along with the United States. and China saw a slight drop in market share from 34% and 27% in 2018, respectively. 2019 was the first year in which China’s share of global DLT funding has declined.
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