Saturday, October 16, 2021

10% of early-stage startups working on blockchain: GSER 2021

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With enterprise capital funding seemingly prioritizing rising know-how, the blockchain trade experiences a major inflow of capital from company backers.

In keeping with the World Startup Ecosystem Report 2021 printed on Wednesday, blockchain-based companies account for 10% of startups worldwide.

The determine is a part of a extra important pattern that has seen rising know-how develop into a fast-growing sub-sector by way of early-stage funding.

The report divides startups into rising, matured and declining sub-sectors. Unsurprisingly, blockchain know-how is within the first group, the place the common progress charge is 107%, together with agriculture know-how (agtech) and new meals, superior manufacturing and robotics, synthetic intelligence (AI) and large information, and fintech.

In keeping with the report, blockchain is the second-fastest-growing sub-sector by way of early-stage funding, with a 121% progress during the last 5 years. Exits amongst early-stage blockchain startups additionally grew by 52% inside the identical interval.

Silicon Valley stays a number one supply of blockchain funding, with buyers like Andreessen Horowitz frequently among the many pool of backers for decentralized ledger know-how startups.

With blockchain among the many main locations for early-stage VC funding, it’s maybe unsurprising to see Silicon Valley on the high of the ecosystem worth creation rankings in keeping with the report.

The World Startup Ecosystem Report used survey information from greater than 10,000 startup executives globally, its methodology web page explains.

Associated: VC funds bullish on crypto, increase investment in blockchain startups

Whereas the GSER focuses on early-stage backing for startups, the report’s particulars are consistent with the established bullish pattern for blockchain amongst enterprise capital funds. 

In April, Cointelegraph Consulting reported that VC companies had invested over $16 billion in blockchain equity since 2012.

In Q1 alone, VC companies invested about $2.6 billion in crypto and blockchain startups, a determine $300 million north of the whole company funding within the sector for the entire of 2020.

The dimensions of the funding funds flowing into the blockchain area additionally serves as a counterargument to criticisms in opposition to the worth proposition of the rising know-how.

With crypto and blockchain typically drawing destructive consideration from policymakers, these multi-million investments may very well be very important in selling the trade.