Innovate Finance’s FinTech Report Sees Record Setting 2018 While 2019 Blockchain Investments Slow
After Record Breaking 2018, Blockchain Investments Still Lag Behind
In 2018, Venture capital (VC) investments in European blockchain tech companies, were beaten only by funding for Fintech companies. Based on an Innovate Finance report, titled ‘2018 FinTech VC Investment Landscape’, the crypto and blockchain industry in Europe rallied over $300 million from four major deals.
Some of these deals include that of Paxos and Dfinity, which both raised about $65 million each in May and August respectively. In September, SEBA crypto with the intention to set up a banking institution that offers cryptocurrencies raised $103 million.
Blockchain In The UK Lags Behind
Reports show that fintechs such as Revolut and N26, gained more VC attention than blockchain companies. In fact, some banks in opposition raised $461 million in 7 agreements.
Blockchain techs took a much lower ranking with 23 deals raising about $174.67 million across these deals.
Blockchain Interests In The Global Scene
Worldwide, Financial technology companies have raised $36.6 billion from venture capitalists. This amount was a 2.5x increment from the previous year and a 4.3x increment for the past 5 years. The total represents 2,304 deals across board.
In the first quarter, a record-breaking deal of $14 billion, was completed by Ant Financial (previously known as Alipay). This deal put Ant official as the world’s biggest platform for online mobile payments.
The leading Fintech investing countries remained the same as always, with China, United states, and the United Kingdom taking the top 3 spots respectively.
China took the lead with 90 deals, garnering $18.9 billion, the United States followed with 1,042 deals garnering $10.6 billion, and the United Kingdom with 261 deals bringing in $1.7 billion.
Diar, a blockchain research group published a report indicating a 280% increase in VC funding while comparing data taken from the 1st to 3rd quarters of 2017 and 2018. This report outlined that almost $3.9 billion was raised from cryptocurrency and blockchain startups during that period.
Regardless of an obvious VC interest in these startups, the existing data shows that these companies sadly have quite a distance to go in acquiring competitive VC funding.