A new report released by Outlier Ventures, published on August 13, shows a new trend emerging in the crypto space: development and focus seems to be shifting from the use of cryptocurrencies to its use in convergence applications.
The report, called Investments in Blockchain 2019, highlights a variety of changes that have occurred over 2019, which has been something of a transitional period for a crypto, as regulators decide how to approach crypto without suffocating the innovation out of the industry.
The report first starts off with an executive summary, stating that blockchain companies have raised $23.7 billion in funds since 2013. This includes ICOs and direct investments. The frequency of blockchain investments is also expected to be nine times as much as it was in 2013 - this is partly due to the fact that many investors have received high returns from early investments in Bitcoin and Ethereum.
Early stage rounds also account for 75% of all investments. However, they do note that there is an issue with receiving funding in Series A rounds, with only 12.8% of all funding being a part of Series A funding, but the funding itself contributing to all
It then goes to speak about the growth of convergence applications since the start of 2013 - most prominently Artificial Intelligence, data and ownership. AI has a 33.8% share of the market. Banking has a 14.7% share and analytics at 10.9%.
Another interesting insight is that the United States is by far the most active when it comes to investment - apparently investing more than the next 3 countries combined! The United Kingdom, China and Singapore follow the US.
The report ends with 3 key takeaways: fundraising is dependent on Bitcoin’s price, location matters greatly for fundraising, and that large capital doesn’t necessary rope in experts.