According to a market research conducted by a tech-based firm ABI Research, global revenues raised for blockchain technology are set to hit the $10 billion mark by 2023.
The report states that investment in the sector is on the rise, although the number of ICO’s has lessened due to regulatory measures. ABI states that venture capitalists are on the rise and have been financing blockchain-based ventures.
ABI reports that the high number of venture capitalists have replaced ICOs as a major tool of funding and there were about 620 funding rounds which cumulatively raised $3.1 billion in 2018. This was a significant increase as there were 153 funding rounds raising $850 million in 2017.
According to ABI’s blockchain and digital security research head Michela Menting, tough regulations coupled with crypto taxation in various nations have driven investors away from ICOs to a more established venture capital forms of investments for blockchain ventures that concentrate on infrastructure building, merchandising, stock management and other commercial applications.
According to the report, blockchain projects that are not in the finance or insurance sectors are having challenges to attract investors. However, ABI is optimistic that such projects will thrive starting from 2021 as awareness continue building.
According to Cointelegraph Menting believes that the crypto winter that has been witnessed in the better part of 2018 will have minimal adverse effects on the growth of blockchain funding in the future. She explained that although the winter has stifled the spirits of some people, there have been fruitful accomplishment of numerous projects and the reduction in enthusiasm is momentary and will help in identifying the fraudulent projects in the industry.
As we reported yesterday, a good example of blockchain funding is Algo Capital which secured $200 million which was double its initial target. This only demonstrates that blockchain-based projects are attracting more VC capitalists in the market.