Bitcoin Bullish Run Helps Spark Global Cryptocurrency Fundraisers By 50% Since Q1 2019: PWC Report
As the value of Bitcoin (BTC) rose in the past few months, global cryptocurrency investment deals are witnessing an increase in value. According to a report by PricewaterhouseCoopers (PwC) released during the Coindesk Invest: Asia, global fundraising deals are witnessing a spike in value despite the levels well below the cryptocurrency boom period in early 2018.
During the boom, cryptocurrency startups raised $480 million USD in Q1 2018. Following the bear market that followed during the year, VCs and investors invested less amounts – Q1 2019 registered a total of $166 million USD. In Q2 2019, the value of these crypto fundraisers has grown by 50% to over $250 million USD, following the boom in BTC’s price.
Lucy Gazmararian, senior manager of PwC’s fintech and crypto team, said,
“The price of bitcoin is the bellwether for the industry and for the sentiment of investors. As the price of bitcoin has recovered, we see the sentiment has become more positive and have seen more activities in fundraising and M&A activities.”
Europe Leads the Pack in Crypto Fundraisers
Europe leads the crypto fundraising space, outpacing the Americas region, with 41% of the total deals completed on the continent in Q2 2019, compared to 34% in Q1 2019. Europe is far ahead the pack, with the Asian market registering 26 percent of the global fundraising deals in the industry during the period. This is an impressive feat for the region that witnessed over 50% growth in number of deals secured by firms in comparison to Q2 2018.
Despite impressively growing in the past year, the Asian region is behind the Americas –registered 28% of the global fundraising deals – down from 51% in the same period in 2018.