United States blockchain and cryptocurrency-focused enterprise capital firm Digital Currency Group (DCG) has made nearly 130 investments within the trade so far, the agency revealed in a blog post on April 1.
Summarizing its efficiency since 2016, DCG, which is headed by well-known cryptocurrency advocate Barry Silbert, invested in 127 startups, nearly all of funding coming within the type of seed rounds.
Whereas not exhaustive, the corporate prompt the info was helpful for gaining a comparability between the blockchain and crypto market in 2016 and on the finish of 2018.
“Startups of all stripes have been elevating more and more more cash in seed rounds, and this holds true for US-based blockchain corporations,” the weblog submit summarized. The report notes that the typical dimension of seed rounds within the U.S. that the agency joined grew 67 % from 2016 to 2018, from $1.94 million to $3.24 million.
Crypto trade startups have needed to climate intensely changeable markets over the previous three years. From flat situations in 2016, 2017 noticed a client market frenzy within the wake of the initial coin offering phenomenon, whereas final 12 months grew to become recognized for its bearish retraction.
“In 2017 — which was a interval of deranged froth within the public markets for tokens — valuations skyrocketed. The common seed-stage valuation jumped from $10.68mm [million] in 2016 to $15.51mm [million] in 2017 (+45%),” DCG famous, including:
“However issues reversed in 2018. Whereas final 12 months was a massacre for publicly traded tokens, valuations in personal seed-stage rounds we joined fell modestly, to a median of $12.93mm [million] (-17%).”
DCG didn’t point out its present standing and plans for the upcoming 12 months, amid signs optimism is nonetheless broadly returning to markets.
As Cointelegraph reported, fellow enterprise capital participant Pantera Capital is eyeing the 2020 Bitcoin (BTC) block reward halving as a catalyst to propel costs larger, signalling a definitive finish to 2018’s bear market.