Blockchain’s curve of seed funding for start-ups is steeper than any other category, including artificial intelligence or big data.
That’s according to Tomasz Tunguz, a Venture Capitalist at Redpoint, who in a data analysis of which seed start-ups are thriving (pictured above), says:
“Blockchain – another exponential curve that shows growth from 0 to 200 startups in eight years. Blockchain is clearly the category with the steepest slope. We can’t predict when the curve will resemble an S, but given the trajectory, it won’t be soon.”
It isn’t clear whether he is using blockchain as a sort of umbrella term to include things like bitcoin services or ICOs, but the chart shows bitcoin was gradually rising until 2016-17 and then just goes vertical in 2018.
A record breaking $5.6 billion was invested in blockchain companies in 2018 by Venture Capitalists.
While investment in blockchain startups as of April this year surpassed all of 2017 with $1.12 billion invested.
In addition, you might think Initial Coin Offerings (ICOs) have cooled down, but there’s Initial Exchange Offerings (IEOs) now.
Some $3.3 billion has been raised in ICOs and IEOs as of May this year, on track perhaps to surpass the $7 billion raised in 2017, but probably not the record breaking $20 billion for 2018.
One hot new area is Decentralized Finance (DeFi), which did not even exist last year as a category, but has now grown to half a billion worth of bitcoin and ethereum assets locked in all sorts of services, such as investments, trading, and payments.
Due to its open and permissionless nature, there’s much innovation going on especially in finance both in decentralized smart contract based projects, but also in centralized services like perpetual futures.
A whole new system is basically being built, with it globally accessible and with pretty much no barriers to entry. So leading to potentially much innovation and thus the attracting of billions in investment.