• Advertise
  • Submit a Press Release
NewsBTC
Bitcoin & cryptocurrency news today, price & technical analysis
Price & Market
Cap Data from
Nomics Logo
  • News
    • Bitcoin
    • Ethereum
    • Ripple
    • Cardano
    • Tezos
    • EOS
    • Chainlink
    • Sponsored
    • Press Releases
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Education
    • What is Bitcoin?
    • Accepting Bitcoin payments
    • Using Bitcoin
    • What is Bitcoin Mining
    • How to Trade Bitcoin
    • How to Buy Bitcoin
    • Digital Currency Exchange
    • Proof of Existence
    • Is Bitcoin legal?
    • Bitcoin Books
  • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
  • TradeeToro
  • Gamble +Try
  • Play GamesTry
  • BUY BITCOINTry
No Result
View All Result
  • News
    • Bitcoin
    • Ethereum
    • Ripple
    • Cardano
    • Tezos
    • EOS
    • Chainlink
    • Sponsored
    • Press Releases
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Education
    • What is Bitcoin?
    • Accepting Bitcoin payments
    • Using Bitcoin
    • What is Bitcoin Mining
    • How to Trade Bitcoin
    • How to Buy Bitcoin
    • Digital Currency Exchange
    • Proof of Existence
    • Is Bitcoin legal?
    • Bitcoin Books
  • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
  • TradeeToro
  • Gamble +Try
  • Play GamesTry
  • BUY BITCOINTry
No Result
View All Result
NewsBTC
No Result
View All Result
Price & Market
Cap Data from
Nomics Logo
Home Cryptocurrency news

Crypto Venture Deals Are On The Decline, But Bitcoin is Up 90% YTD

Nick Chong by Nick Chong
2 years ago
in Cryptocurrency news
Reading Time: 3min read
Crypto Venture Deals Are On The Decline, But Bitcoin is Up 90% YTD
Advertisement
Nexo Logo
Listen to Article

While the past few months have seen Bitcoin (BTC) recover in dramatic fashion, data suggests that venture capitalists and other notable investors have begun to put their feet on the crypto brake. But this isn’t bearish per se. Let’s take a look.

Related Reading: Despite The Bear Market, Crypto Startups Got Boosted By Billions In 2018

Crypto & Blockchain Venture Capital Sees Tough Q1

According to Alex Thorn, a crypto-friendly venture capitalist based in Boston, investments into cryptocurrency startups, not digital assets themselves, has lagged behind Bitcoin’s price by about six months.

This means that industry firms actually saw their largest quarter in Q2 of 2018, rather than Q4 of 2017 as retail traders would expect, raking in nearly $2.4 billion collectively. Per Thorn, who cites data from Pitchbook, Q4 of 2018 saw a mere fifth of that, with crypto companies pulling ~$550 million worth of deals. If this trend continues, venture investments in blockchain upstarts may continue to see few cheques fly their way.

5 BTC + 300 Free Spins for new players & 15 BTC + 35.000 Free Spins every month, only at mBitcasino. Play Now!

https://twitter.com/intangiblecoins/status/1123783737303498752

Thorn also notes that not only is direct venture investment down but so are deals made by accelerators and angel investors. In fact, since Q1 of 2018, the number of deals in this category, which are often of smaller volume and made with more gritty, on-the-ground-floor startups, has reached their lowest point since before 2017. Ouch. Thorn explains the significance of this fact:

“Doesn’t bode well for the number of seed and early stage deals we’re likely to see over the next few quarters.”

And to put a cherry on top of the depressed, not so tasty venture capital cake, the number of crypto-focused deals, the count of investors participating in said deals, and total capital is all down since their early/mid-2018 peaks.

Thorn’s recent analysis comes just after Business Insider revealed that in the past four months alone, startups in this embryonic space have secured $850 million in 13 large deals, seemingly contradicting the aforementioned data. This influx of funding comes in spite of “finance execs’” worries that blockchain as a technological advancement still has an array of drawbacks: lack of regulatory clarity, failure to interoperate, a lack of network continuity, intellectual property concerns, and an inherent inability to scale.

Deals Are Still Brewing

Make no mistake, while Thorn notes that money flooding into cryptocurrencies and blockchain is on the decline, there are still notable deals being struck. And what’s notable about this trend is that now, projects looking to turn a quick buck with vaporware and questionable business strategies are being excluded — arguably a bullish sign.

Lesser-known yet respected crypto exchange Liquid, for instance, just closed its Series C funding round, which saw its private value rise to over $1 billion. Liquid saw cheques written from IDG Capital, a prominent Asia-centric venture fund, and Bitmain, the Bitcoin mining space’s most prominent yet controversial player. Bakkt, the cryptocurrency initiative/platform backed by NYSE’s owner, the Intercontinental Exchange (ICE), saw a casual $182.5 million fly its way, kicking off 2019 with a bang.

Just the other day, ErisX, a TD Ameritrade-affiliated cryptocurrency platform led by a notable Wall Street veteran, secured $20 million, before announcing that it had opened its Bitcoin spot market. And HTC, just two weeks back, backed Proof of Capital, a venture fund with a $50 million principal focused on investing in “market-transforming companies” in the blockchain ecosystem, especially those that involve identity, payment, custody, and data security.

And there may be even more high-quality, high-ticket deals after a number of IPOs close later this year.

Even if the IPO frenzy doesn’t do much to quell the declining levels of crypto-related venture investment, some are sure that Bitcoin and related technologies can succeed anyway. As reported by NewsBTC over recent days and weeks, industry developments, save for the Bitfinex and Tether news, technicals, and on-chain statistics are all signaling that the cryptocurrency market is getting back on its feet.

Related Reading: Bitcoin Rally To Be Preceded By More “Crypto Is Dead,” Layoffs, Regulation, Says Investor
Featured Image from Shutterstock
Tags: bitcoincryptoinvestment
TweetShare39
BitStarz Player Lands $2,459,124 Record Win! Could you be next big winner? Win up to $1,000,000 in One Spin at CryptoSlots
Nick Chong

Nick Chong

I am a writer who has been following Bitcoin for years now. My insights and interviews have been featured in leading publications in the industry such as LongHash and Decrypt. I own a small amount of Bitcoin.

Related Posts

router

Emerging DeFi Project Router Protocol Raises Seed Funding, To Launch Cross-Chain Farming Soon

36 mins ago
bitcoin dark web monero

Why The Dark Net’s Most Active Market Ditched Bitcoin For Monero

2 days ago
Bitcoin, cryptocurrency, BTCUSD, BTCUSDT

Bitcoin Reclaims $40,000 as Powell Rubbishes Taper Tantrum Woes

2 days ago
Bitcoin, cryptocurrency, BTCUSD, BTCUSDT

Bitcoin Logs Revenge Recovery as Lagarde Calls for Global Regulation

3 days ago
Bitcoin, cryptocurrency, BTCUSD, BTCUSDT

Bitcoin Flickers Near $35,000 as Bond Yields Drop; A Detailed Outlook

3 days ago
bitcoin bar new york

Landmark Real Estate Listing Offers Two New York Bars For 25 Bitcoin

4 days ago

Premium Partners

Top Brokers

eToro

eToro

Review · Visit
Changelly

Changelly

Review · Visit
Evolve Markets

Evolve Markets

Review · Visit
ArbiSmart

ArbiSmart

Review · Visit
PrimeXBT

PrimeXBT

Review · Visit
Moneta Markets

Moneta Markets

Review · Visit

Top Casinos

BitStarz

BitStarz

Review · Visit
CryptoSlots

CryptoSlots

Review · Visit
mBit

mBit

Review · Visit
CryptoGames

CryptoGames

Review · Visit
Bonusfinder DE

Bonusfinder DE

Review · Visit
Bspin

Bspin

Review · Visit
Wolf Bet

Wolf Bet

Review · Visit

Top Sportsbooks

1xBit

1xBit

Review · Visit

Press Releases

SV-based Taraxa Revolutionizes Legacy Data Auditing With Mathematically Provable Audit Trails

January 15, 2021

Kickoff Your DeFi Journey With YOYO FINANCE – Their Token Sale Is Live

January 14, 2021

RAI Finance Pre-sale Finishes in 1 Minute

January 13, 2021

Newsletter Signup


ABOUT US

NewsBTC is a cryptocurrency news service that covers bitcoin news today, technical analysis & forecasts for bitcoin price and other altcoins. Here at NewsBTC, we are dedicated to enlightening everyone about bitcoin and other cryptocurrencies.

We cover BTC news related to bitcoin exchanges, bitcoin mining and price forecasts for various cryptocurrencies.

COMPANY

  • Advertising
  • Comments Policy
  • Privacy Center
  • Sitemap
  • About Us
  • Contact

Technical Analysis

  • Bitcoin (BTC)
  • Ethereum (ETH)
  • Ripple (XRP)
  • Chainlink (LINK)
  • Cardano (ADA)
  • Tezos (XTZ)

LINKS

Auto Trading Software ▸

Cryptocurrency news

  • Bitcoin
  • Ethereum
  • Ripple
  • Chainlink
  • Cardano
  • EOS
  • Tezos

© 2020 NewsBTC. All Rights Reserved.

  • News
    • Bitcoin
    • Ethereum
    • Ripple
    • Cardano
    • Tezos
    • EOS
    • Chainlink
    • Sponsored
    • Press Releases
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Education
    • What is Bitcoin?
    • Accepting Bitcoin payments
    • Using Bitcoin
    • What is Bitcoin Mining
    • How to Trade Bitcoin
    • How to Buy Bitcoin
    • Digital Currency Exchange
    • Proof of Existence
    • Is Bitcoin legal?
    • Bitcoin Books
  • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
  • Trade
  • Gamble +
  • Play Games
  • BUY BITCOIN

© 2020 NewsBTC. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.