Blockchain and ICO industries overview
Despite the buzz in the industry, Blockchain market is underfinanced and accounts to 2,3% of FinTech market
There is a decreasing tendency towards launching new blockchain companies 2015 and 2016 showed a very slow growth in the block- chain investments: 33% and 18% respectively While Blockchain industry has an enormous potential, it was invested only 0.5B USD in comparison with 23B USD invested into Fintech industry, meaning that the Blockchain industry is underfinanced Several companies were already acquired by bigger ones due to lack of funding
2016
542
2015
458
2014
344
2013
83
2012
3
119 99
54 31
12
Investments in blockchain Key market observations
# of rounds
amount of capital, $M
Major Acquisitions in 2016+314%
+33%
+18%
1 Circle 2013 Late $110M 6/16 $60M US Remittance 2 Ripple 2012 B $90.5M 9/16 $55M US Remittance 3 Blockstream 2014 A $76M 2/16 $55M Canada Bitcoin 4 Bitfury 2012 Late $110M 1/17 $30M US Security 5 Bitflyer 2014 C $32M 4/16 $27M Japan Exchange 6 Quoine 2014 A $22M 6/16 $20M Singapore Finance 7 Coibase 2012 Late $117M 7/16 $10.5M US Info, bitcoin 8 Gem 2014 A $10.4M 1/16 $7.1M US Developers 9 Simplex 2014 A $8.4M 2/16 $7M Israel Payments 10 Symbiont 2015 A $8.3M 1/16 $7M US Software 11 Tech Bureau 2014 A $6.5M 5/16 $6.5M Japan Developers 12 Zaif 2015 A $6.7M 5/16 $6.2M Japan Finance 13 Lisk 2016 PreA $5.7M 3/16 $5.7M Germany Developers 14 BlockStack 2014 A $5M 10/16 $5M Philippines Banking 15 Elliptic 2013 A $7M 3/16 $5M UK Bitcoin 16 Bitt 2013 A $5.5M 4/16 $4M NZ Payments 17 Chronicled 2014 PreA $3.4M 3/16 $3.4M US Hardware 18 Equibit 2015 PreA $3M 2/16 $3M Canada Finance 19 OB1 2015 A $3M 12/16 $3M US E-commerce 20 OpenBazar 2014 A $4M 12/16 $3M US Consumers
The Blockchain industry is obviously underfinanced: the difference between the 1st and 20th largest investment deals in 2013-2016 is 2750% (or $57M) – sign of green industry
Need for new crypto investment instruments became a trigger for ICO growth
Raise of
blockchain assets
Raise of
models of cryptocurrency applications
Raise of
cryptocurrency investment instruments
2009 2013 2017
The market of Blockchain assets, including crypto curren- cies was very limited to “but/sell” only. Investments in blockchain were also limited by risks and early stage of an industry
New ICO options emerged on a basis of crowdfunding and crowd investing in to a startups. The 1st ICO was held in 2013.
New ICO options emerged on a basis of crowdfunding and crowd investing in to a startups. The 1st ICO was held in 2013.
What is ICO?
Tokens are crowdfunding units, sold by projects in order to develop the product / support the expan- sions / accumulate tokens for other goals
Tokens represent rights, which may be of different types:
In many cases tokens give a right to get some service in future (eg. transactions)
It can be an access to the platform
In certain cases tokens represent rights for dividends or underlying assets (eg, commodities or shares)
In the process of ICO tokens can be sold for fiat (USD, EUR) or more liquid tokens with mature eco- system and cryptocurrencies (bitcoins and ethers)
ICO