CB Insights: Funding ICO Startups …

CB Insights: ICO Startup Funding Drops 95% In 2019

Funding for crypto startups through initial coin offerings (ICOs) in 2019 decreased by more than 95% – from $ 7.8 billion in the previous year to $ 371 million, according to analyst firm CB Insights in a recent report..

At the same time, the share of direct financing increased. In total, according to CB Insights, 807 venture deals were made in 2019. The value has only slightly decreased compared to 2018, when there were 822 such transactions. The total volume of investments, however, decreased from $ 4.26 billion to $ 2.79 billion, or by about 30%.

For context, let’s turn to earlier data. In 2017, venture capitalists invested $ 1.25 billion in crypto startups in 297 transactions. At the same time, the average investment was then higher – $ 4.22 million versus $ 3.45 million in 2019.

CB Insights: Funding ICO Startups ...

CB Insights has also noticed a trend towards VC funding of their own crypto ecosystems. The two most active investors in 2019 were NEO Global Capital and Coinbase Ventures. In addition, they point to the development of the decentralized financial services (DeFi) space, which today has over $ 1 billion in assets, up from $ 300 million in January 2019..

In 2019, 53% of venture capital transactions in the cryptocurrency space took place in the United States and China, and since 2015, there has been a gradual shift in favor of the second country. So, in 2015, the United States accounted for 51% of funding in the blockchain space, and China for 2%. Now this ratio is 31% and 22%, respectively..

CB Insights: Funding ICO Startups ...

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