Blockchain Shines in Early Stage Global Venture Funding Rounds in 2017

Blockchain investments were limited to only a few stages, as the segment is still developing its potential


Blockchain technology enjoyed a significant boost in the early-stage global venture funding (VC) in 2017, according to a recent analysis by GlobalData, a leading data and analytics company.

The company confirmed that Blockchain technology start-ups attracted the most seed funding at 40 percent last year, indicating a growing preference for the sector by venture firms. However, Blockchain investments were limited to only a few stages, as the segment is still developing its potential.

Jitesh Nair, Deals analyst at GlobalData, said: "Blockchain technology start-ups are currently an attractive proposition for venture funding as we see the segment achieving 40 percent seed investment and over 50 percent in Series A and B funding in 2017.

“Part of the reason for this is that Blockchain technology is continuing to find wider applications outside the financial services. Nearly 50 percent of all Blockchain technology seed rounds in 2017 were targeted at Blockchain technology start-ups aimed at consumer, defense and the media space markets.”

The company’s analysis on major technologies in the VC funding space also revealed that both the Security and Payment Technologies segments attracted similar levels of investment of over 60 percent in the growth stage and the lowest seed funding levels of 18 percent.

With a 30 percent share of total global venture funding, Artificial Intelligence came second in seed funding rounds recorded in 2017.

Digital business remains the only segment to have received venture funding at both ends of the investment spectrum. Overall, the companies involved in digital businesses, as well as robotics, and drones, have recorded a notable spread of funding across all three stages – early, growth and late stage.

Nair added: “These two sectors managed to attract seed stage funding of 29 percent and 22 percent, respectively, in 2017. They also received late-stage funding of 15 percent and 19 percent, respectively, indicating significant scope for startups and continued growth opportunities for existing players."

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