While initial coin offerings (ICOs) have dominated the headlines, more traditional forms of equity financing are quickly gaining a more prominent role within the emerging crypto industry.
According to a recent report by market research group Diar, total venture capital raised by blockchain and cryptocurrency startups has reached $3.8 billion in 2018, a three-fold increase over last year’s total. This total was raised across 384 deals with as many as 2,000 investors involved.
In addition to a jump in total deals, the median check investment round size has increased more than a million dollars to $2.5 million in 2018. The majority of the dealmakers are based in the U.S. (79%), with major investment groups participating, including Andreessen Horowitz, Bain Capital and Barry Silbert’s Digital Currency Group (DCG).
This trend coincides with a drop in the total number of successful ICOs, which currently sits at 52-week lows while the capital raised from these sales continues to struggle.
Disclaimer: This article’s author has cryptocurrency holdings that can be tracked here. This article is for informational purposes only and should not be taken as investment advice. Always conduct your own due diligence before making investments.