Ecosystem Thought — June 27th, 2017
Top 20 VC-Backed Blockchain Companies
Author: Eric Risley, Eric Xu
While recent headlines breathlessly feature financings via initial coin offerings (ICOs), perhaps a more substantive sign of the promise of blockchain is the venture capital funding the technology has attracted. We’re mindful that funding raised doesn’t always correlate with ultimate success in creating a business, but it does strongly signal potential as judged by sophisticated professional investors well acquainted with emerging market risks. According to Coindesk, since 2013, blockchain companies have raised over $1.7 billion in VC funding.
The following graph presents the top 20 most VC-funded blockchain companies organized by total funding raised and date of last funding round. Interestingly, a full half of the companies listed have only completed an A round and only four (Circle, Coinbase, BitFury and bitFlyer) have raised more than two rounds of VC funding.
The graph illustrates which industry applications of blockchain have gained the most funding. Besides cryptocurrency wallets and exchanges, private digital ledgers for the clearing and settlement of financial transactions have emerged as the most common product offering among these companies, with Digital Asset, SETL.io, Juzix, Paxos, and Axoni developing instant settlement platforms. Startups such as Juzix and Filament are also developing applications extending beyond the financial sector, including IOT tracking networks secured using blockchain and using distributed ledgers in aviation and healthcare.
While we believe that a robust M&A market will take time to develop, these companies are positioned to become important acquirers over time, and some will become the successes that will attract acquisition interest from a broad array of potentially threatened “legacy” companies.