VC investment in bitcoin, blockchain start-ups slow down in 2016
The total dollar amount of financing where smart money investors participated fell from approximately $295 million in 2015 to $212 million in 2016
While many have opened up to using bitcoins and blockchain technology, financing by investors in bitcoin and blockchain start-ups has slowed down in 2016.
Source: CB Insights
The total dollar amount of financing where smart money investors participated fell from approximately $295 million in 2015 to $212 million in 2016, a 28% decline.
The year saw only 5 of the top investors participate across 8 deals, the lowest number since investment to the sector first began, according to CB Insights.
The investment in bitcoin and blockchain start-ups in 2015 were buoyed in large part by 21’s $111 million Series C — the largest bitcoin and blockchain financing to-date — in which smart money VCs Khosla Ventures and Andreessen Horowitz participated, said the report.
Source: CB Insights
The highest investment in 2015 was seen in Q1 where $209 million was pumped into it from 6 deals. However, investment in subsequent quarters during the year dropped. Though investment at the start of 2016 picked up it was however was much lower than 2015.
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