Virtual Currency Investment Into Crypto Startups- Part 1

Where Are The Crypto Startups Investing?

Much of the media attention for moths on the crypto space has been directed at ebbs and flow in the price of Bitcoin on one side as well as whiz-bang ICOs on the other. Bitcoin the most valuable cryptocurrency of the lot has the price backpedaled significantly from highs set. While hitting headlines those dramatic price swings, as well as the media, has not been shy in covering bitcoin’s ups and downs as the hype around ICOs is understandable as well given that markets’ velocity, eye-popping market capitalizations and titillating if unfortunate stories of theft and subterfuge. 

It is well known that the comparatively quiet as well as glacially paced world of traditional venture capital deserves no short shrift from reporters, market analysts, and enthusiasts alike. The venture fundraising totals alone are more than 40 percent of the way to 2017s high watermark. Similar to all emerging technologies, as well as nascent companies working on them, there is no discussion whether these bets are generating significant returns whereas the very cryptocurrency mining computers have to hash away at these blockchains, venture investment in this ecosystem may prove to be a waste of energy with a lot of hot air as the venture investors seem alright with buying equity during the dip.

A Look At The Seed Funding Of Crypto.

Let’s take a look at how much venture money is being invested, by whom and where these ventures backed crypto companies call their home. 

For insights into blockchain and blockchain adjacent companies of data mining

Thereby they are avoiding any complaints from so-called maximalist supporters of anyone cryptocurrency or blockchain ecosystem that are going to be based the following analysis on a fairly wide basket of companies

Learning more about the dataset of companies used for the article skipping to the bottom for notes on methodology following an analysis of the data that shakes out of our bundles of crypto companies

Eclipsing the highs are venture dollar volume 

This comes around despite all the market hype around ICOs as some of that having raised hundreds of millions of dollars, venture investment in blockchain, and related companies have kept pace as well. 

Here’s captured a good ol’ fashioned venture rounds with convertible notes, seed, and angel rounds as the Series As as well as through the alphabet not the Wild West world of ICOs. It is explained that despite price volatility in crypto land’s most valued blockchain asset, Bitcoin venture investment in terms of sheer dollar volume is on pace to eclipse even the banners year.

Who Is Investing In All These Rounds?

The funding total was by then boosted by several sizable venture rounds that included Coinbase’s $ 108.1million Series D, $ 43.45 million invested in Chinese ASIC chip manufacturer Canaan Creative and a $ 42.5 million Series B raised by multi-signature Bitcoin wallet provider BitGo. Whereas there was a strong start with a $ 75 million Series B closed by secure hardware wallet maker Ledger, $ 18 million invested in the seed round of Russian blockchain –for-cargo – tracking platform QUASA and $10 million invested in SF- based Harbor Platform among other large rounds. Whereas by now which are the funds investing in these more recently raised rounds? 

Where Is The Funding Being Reached? 

Most cryptos find their investment in seed and angel funding. This helps them go public with major stakes being held by the stakeholders who put their trust in the Bitcoin market as well as other popular crypto coins. This is why the major fundraisers depend on the popularity of the crypto coin. The only trust is that mining the coins bring developers to the end space of creating a decentralized ledger dependent cryptocurrencies. There are still many possibilities existing as the Bitcoin and its allied services bring to the investors and developers. This is the reason behind the popularity of these coins as a global currency transcending the borders and enabling investors to reach a global audience. 

 To Be Continued In The Next Post

There is a lot of speculation going around when it comes to Bitcoin investors as they are still unsure about the credibility of the coins. Following the news of exchanges being hacked and coins being stolen, more and more investors’ are questioning the credibility of coins and the security of exchanges while opting for offline storage as the ultimate solution. Read on and know all about it in the next post.