I
In 2008, at the height of the Great Recession, Bitcoin’s anonymous
creator(s) proposed a “peer-to-peer transfer of virtual cash that
would allow online payments to be sent directly from one party
to another without going through anancial institution.” One year
later, therst Bitcoin block was mined.
Fast-forward to today: the total market capitalization ofcrypto-
currencies hovers around $150B (with a single bitcoin trading
for upwards of $5,000), Walmart and P zer have completed
successful blockchain pilots in food safety and medicine tracking,
and initial coin offerings (ICOs) have exploded in popularity, closing
on $2B+ in funding in 2017 alone.
Politically, blockchain technology has fostered a renewed
examination of today’s highly centralized web, and reignited
conversations around currency and value, digital governance, and
the fundamental structures and rails of our modern internet.
But how did we get here
This report will explore how various forces have shaped the current
blockchain landscape. Speci cally, we’ll take a data-driven look at
venture, corporate, and initial coin offering investment trends,
and offer some insights into blockchain’s immediate future. (Note
that blockchain is the term we’ll use as a catch-all encompassing
this ecosystem.)
II
Initial Coin Offerings
Venture & Equity Investment
Trends
Corporate Investment Trends
Looking Ahead627
Table of
Contents
III
Report
Highlights
Initial Coin Offerings
Initial coin offerings have raised more than $2B in 2017 YTD.
More than 250 ICOs have taken place since January 2016,
with total ICO deals and funding increasing at a faster clip than
traditional equity deals and dollars.
ICOs look to remain thenancing method of choice for
blockchain startups. On a quarterly basis, total funds raised by
ICOs surpassed total funds raised via traditional equitynancing
for therst time in Q2’17. This trend shows no signs of slowing,
especially if regulatory measures prove favorable.
Over-capitalization is a continuing concern. Teams holding ICOs
might be receiving too much money too quickly. When compared
to traditional equitynancing in the sector, ICOs raise well above
the historical average of $3M for early-stage (seed / angel and
Series A) blockchain deals.
Venture & Equity Investment
Mega-deals push equity funding up, but growth slows as ICOs
take hold. Traditional equity deals and funding could see their
highest annual totals ever, although the number of teams raising
via ICOs is increasing more quickly. At the current run rate, 2017
is on pace for 188 equity deals worth $830M+, up from 138 and
$545M in 2016. Mega-deals have substantially boosted this year’s
numbers, with R3’s $107M Series A and Coinbase’s $100M Series
D leading the pack.
More VCrms are investing in cryptocurrency hedge funds,
ICOs, and tokens directly. Brand-name investors placing bets on
top ICOs could signal institutional interest in this most recent wave
of blockchain innovation.
Corporate Investment
Corporate investment is set to rise in 2017. The number of unique
active corporate investors has hit a high of 91 in 2017 YTD, and
is closing in on the number of active venture capital investors
participating in equitynancings.
Consortia continue aggressive vertical and geographic
expansion. Building on successful pilots and trials, consortia
have expanded to verticals well beyondnancial services and
continue to bolster their ranks with geographically diverse mem-
bers. Although there have been a number of high-pro le members
exiting consortia, successful trials and expanding member bases
could bode well for the future of blockchain consortia, which
are fundamentally tied to the quantity and quality of their
respective members.。