According to a new report by CB Insights, the volume of venture financing in the blockchain companies last year decreased by a third from $4.2 billion to $2.8 billion. Though the number of deals decreased only from 822 to 807.
We just published a new report: The Blockchain Report 2020. Download the complete PDF right here: https://t.co/1ZSG4aFtkD— CB Insights (@CBinsights) March 19, 2020
The company explains the revealed difference with the high base of 2018. That year, several concluded agreements at the last stage of venture financing were closed at once. For example, selling $400 million in Bitmain shares, raising $300 million for Coinbase exchange following the results of the Series E funding round, and getting Hyperchain $234 million for Series B.
In this regard, 2019 was rich only in Ripple and Figure deals, which raised $200 million and $103 million in Series C financing rounds, respectively.
Geographically, the share of transactions with companies from China increased. In 2019, their number increased by 22%, while with the participation of companies from the United States it decreased by 31%. A similar trend has been observed over the past five years.
Investments in corporate solutions on the blockchain still account for a smaller amount of the total out of $2.8 billion, they accounted for only $434 million. Crypto companies received $2.35 billion.
Earlier we wrote that since the beginning of 2020, the total amount of VC investments in the industry has decreased by about 40% compared to the previous similar period. It is remarkable that if we take the 15 hugest transactions in 2019 and this year, the total amount of attracted financing will be approximately the same. VCs preferred wallets, custodian, and landing services. You can read more about this in our article.