Subscribe to Our Newsletter
Wednesday June 29, 2022
Bitcoin (BTC) $20,179.00   Ether (ETH) $1,134.25
  • Events
  • News
    • Blockchain Technology
    • Capital Raising
    • Crypto Exchanges
    • Crypto Payments
    • Gaming & Betting
    • Investment Management
    • M&A
    • Mining
    • Networks & Protocols
    • Security
    • Vendor Technology
    • Wallets
No Result
View All Result
Easily Swap USDT (TRC20) & More
CryptoNinjas
  • Crypto & Blockchain Links
  • Real-Time Market Data
  • Bitcoin ATM Map
  • Token Offerings/Listings
CryptoNinjas
Home Blockchain Technology

AI, FinTech emerge as key focus areas for blockchain start-ups, with data ownership not far behind

A new study of blockchain investments by Outlier Ventures in early-stage rounds reveals that $23.7 billion has been raised since 2013 with the focus moving from pure cryptocurrency to new applications.

AI, FinTech emerge as key focus areas for blockchain start-ups, with data ownership not far behind

Leading blockchain and Web 3.0 venture capital firm Outlier Ventures today published it’s latest Investments in Blockchain report, which provides an overview of blockchain investment and market trends worldwide since 2013.

The report reveals a range of insights into the market:

  • $23.7 Billion raised by 3738 blockchain companies since 2013
  • Early-stage fundraising high in the count, but follow on rounds few and scarce

Blockchain startups have raised finance in multiple forms including ICOs, debt, direct investments and crowd-funding. However, discounting a handful of exchanges and wallets, there hasn’t been an application that has broken through to mainstream adoption, yet. This definitely isn’t for lack of capital. The challenge is more about expertise and guidance at early stages, especially when it comes to areas unique to Web3 such as token design.

Joel John, Research Analyst at Outlier Ventures explains:

“There is often an expertise gap with capital investments. The heavy competition in early-stage financing for blockchain-based startups means a large number of investors provide nothing more than capital. Investments in equity are considered a hedge against liquid tokens. 

In addition to a lack of much-needed guidance during the early stages, this also brings along expectations of quick exits from investors that are used to typically being in liquid assets like ICO tokens.”

75% of all deal flow focused only on early-stage rounds 

In 2019, the frequency of blockchain investments will be up nine times in comparison to 2013. Pre-seed, Seed and Angel rounds account for ~75% of all the deals in the ecosystem.

The number of early-stage backers has increased substantially due to the massive returns from early investments in Bitcoin and Ethereum. However,  this financing has not converted to follow on-rounds, and indicates that while early-stage funding is relatively easy, many traditional VCs are waiting for evidence of product-market fit and clearer signs of revenue before making further investments.

Joel John, comments: 

“Average seed amounts are healthy, but evolving to reach a Series B raise is a hard business. Challenges with learning curves in user-experience and designing profitable business models make it difficult for startups in the ecosystem to evolve past a point. 

“Blockchain startups have the two-fold challenge of establishing a new paradigm and warding off existing competition –  a hard task to do without the necessary guidance in place.”

In terms of blockchain investment focus area, Bitcoin’s early mover advantage and network effects meant most teams focusing on the space early on were building specifically for it.

However, there is a shift from focusing purely on cryptocurrency to convergence applications. AI leads the pack, with Fintech and data analytics starting to close the gap. A growing area of focus is data ownership, along with increasing new interest in self-sovereign identity following the recent data exploitation scandals.

Fundraising is cyclical

Founders are dependent on Bitcoin’s price to raise capital for what may not necessarily be a token dependent project. The heavy exposure of institutional players in the ecosystem to token prices swing risk appetites on the basis of how tokens perform.

This means there’s greater competition to raise capital from a handful of backers during bear markets, and also competition against a number of other equally well-funded projects during bull markets. Expertise and value-added services are the only key differentiators that teams can rely upon.

Location matters for future funding 

Founder access to a network in regions where funding activity is active determines the possibility of the company going on to raise follow-on rounds. The United States leads globally when considered at a national level. However, regional FinTech hubs such as London are catching up with former favorites such as San Francisco. London has evolved to be a hub for early-stage companies looking to raise seed stage rounds, roughly $1 billion has been raised by blockchain companies in London since 2013.

Be part of the development and growth of new technologies

The Investments in Blockchain report findings coincides with the launch of Outlier Ventures first Base Camp program to support the development and growth of new technologies in the open data economy.

To apply to be part of the program visit: https://outlierventures.io/base-camp/

  • 3-month accelerator program based in London
  • £35k immediate funding for early-stage projects
  • Up to £200k total funding available per team
  • Office space, legal, accounting and back-office support
  • World-beating ecosystem of investment, enterprise and tech partners

To apply to be part of their growing ecosystem of global mentors go to:

https://outlierventures.io/research/why-you-should-apply-to-be-a-mentor-for-our-latest-accelerator-base-camp/

38
SHARES
FacebookTwitterLinkedinRedditE-MailTelegram

Related News

Crypto management platform Finoa aligns with Outlier Ventures to grow web3 startups

03/30/2022
Crypto management platform Finoa aligns with Outlier Ventures to grow web3 startups

Finoa, a Europe-based crypto provider offering custody and staking products, announced today the start of collaboration with Outlier Ventures, a venture fund and accelerator platform focused on blockchain. Through this collaboration, Finoa will support...

Read more

Outlier Ventures opens applications for new Polygon x Base Camp Accelerator

10/18/2021
Outlier Ventures opens applications for new Polygon x Base Camp Accelerator

Outlier Ventures, the European blockchain accelerator ecosystem, today announced that Polygon, the Ethereum scaling platform - has been chosen for Outlier's latest Base Camp Accelerator program. To date, Outlier Ventures has accelerated more than...

Read more

Outlier Ventures launches new accelerater for projects leveraging Filecoin

07/07/2021
Outlier Ventures launches new accelerater for projects leveraging Filecoin

Outlier Ventures, a blockchain investment and accelerator network, announced it has teamed up with Protocol Labs to launch the Filecoin Base Camp, its first-ever collaboration accelerator that will fast track the development of 40...

Read more

Boson Protocol and Outlier Ventures outline framework for decentralized ecommerce ecosystem

04/27/2021
Boson Protocol and Outlier Ventures outline framework for decentralized ecommerce ecosystem

Following extensive joint research, Boson Protocol, the project building a capture resistant dCommerce ecosystem using NFTs encoded with game theory, and European venture capital firm Outlier Ventures, have released a formative report outlining the...

Read more
Load More

Discussion about this post

Where to Exchange

Crypto services suite in Spanish Visit
European bitcoin exchange Visit
Swap & buy 150+ cryptocurrencies Visit
America's first regulated bitcoin exchange Visit
  • Trending
  • Latest
Polygon DAO integrates DiD service to prevent hostile takeovers and whales

Polygon DAO integrates decentralized ID service to prevent hostile takeovers and whales

06/22/2022
Blockchain data platform Chainalysis introduces 'Crypto Incident Response Program'

Blockchain data platform Chainalysis introduces ‘Crypto Incident Response Program’

06/22/2022
Crypto-gold exchange Vaultoro lowers fees, increases withdrawal limits

Crypto-gold exchange Vaultoro lowers fees, increases withdrawal limits

06/23/2022
CoinLoan integrates crypto analytics platform Elliptic to guard users from threats

CoinLoan integrates crypto analytics platform Elliptic to guard users from threats

06/23/2022
Crypto market data provider Kaiko raises $53M in Series B

Crypto market data provider Kaiko raises $53M in Series B

06/28/2022
NinjaTrader, Tradovate offering Nano Bitcoin futures from Coinbase Derivatives Exchange

NinjaTrader, Tradovate offering Nano Bitcoin futures from Coinbase Derivatives Exchange

06/27/2022
Fintech services platform Colendi acquires enterprise blockchain company SETL

Fintech services platform Colendi acquires enterprise blockchain company SETL

06/27/2022
Crypto-gold exchange Vaultoro lowers fees, increases withdrawal limits

Crypto-gold exchange Vaultoro lowers fees, increases withdrawal limits

06/23/2022
  • Home
  • Directory
  • Data
  • About
  • Contact
SUBSCRIBE

© 2016 - 2022 CryptoNinjas Disclosures | Privacy Policy

  • Home
  • Crypto Links
  • Market Data
  • Blockchain Tech
  • Exchanges
  • Capital Raising
  • Vendor Technology
  • Token Offerings/Listings
  • Payments
  • Wallets
  • Bitcoin ATM Map
  • Conferences & Events
  • About
  • Contact
No Result
View All Result

© 2016 - 2022 CryptoNinjas Disclosures | Privacy Policy