Venture Scanner is your analyst and technology-powered startup research firm

May 2017

Blockchain TechnologyQ2 Startup Market Trends and Insights

Blockchain technology report outline

2

This report provides an overview of the blockchain technology sector and is broken down into three sections

Sector Description

High-level sector metrics, maps, and category definitions

Trends & Insights

Infographics and data points for the blockchain

technology sector

Quarterly Activity

Major funding and exit events from the previous

90 days

Venture Scanner reports are built by analysts utilizing our startup database and research platform

Blockchain Technology Sector Description

3

Blockchain startups are creating new businesses in 12 categories

4The graphic above shows a sampling of companies in each category, stats as of May 2017

Bitcoin / Blockchain Technology

Learn about our full report with 923 companies across 12 categories with

$2.2B in funding

Bitcoin Exchanges Bitcoin Mining Bitcoin Wallets

Bitcoin Payments Bitcoin Financial Services

Trust

News

Bitcoin Infrastructure Blockchain Innovation Big Data Gambling Services

5

Innovation quadrant for blockchain technology

AVERAGE FUNDING ($M)

AV

ER

AG

E A

GE

(Y

EA

RS

)

ESTABLISHED HEAVYWEIGHTS

PIONEERS DISRUPTORS

This quadrant shows a relative segmentation of the categories with respect to one another, data as of May 2017

Bitcoin Mining

Bitcoin Big Data

Bitcoin Wallets

Bitcoin Trust & Verification

BlockchainInnovations

Bitcoin Payments

Bitcoin Infrastructure

Bitcoin Exchanges

Financial Services

Bitcoin News & Data

Bitcoin Services

Bitcoin Gambling

Blockchain startups play in many different categories (1 of 2)

6Category stats as of May 2017

Bitcoin Big Data9 Startups, $47M Total FundingCompanies that develop tools to analyze activity on the public ledger to increase transparency

Bitcoin Financial Services145 Startups, $122M Total FundingCompanies that provide typical banking services using bitcoin technology

Bitcoin Infrastructure75 Startups, $131M Total FundingCompanies that build the technology that supports the continued development of the bitcoin ecosystem

Bitcoin News and Data Services57 Startups, $5M Total FundingCompanies that provide news and raw data services around the bitcoin ecosystem

Bitcoin Exchanges216 Startups, $442M Total FundingCompanies that allow users to buy and sell crypto-currencies and implement trading strategies

Bitcoin Gambling37 Startups, $4M Total FundingCompanies that offer gambling opportunities using bitcoin as the stakes

Bitcoin Mining72 Startups, $320M Total FundingCompanies that develop the computer hardware associated with processing bitcoin transactions

Bitcoin Payments107 Startups, $485M Total FundingCompanies that enable consumers to pay for real world goods and services using bitcoin and for merchants to accept those payments

Blockchain startups play in many different categories (2 of 2)

7Category stats as of May 2017

Bitcoin Services27 Startups, $2M Total FundingCompanies that provide business services such as recruiting and tax prep, but with a bitcoin focus

Bitcoin Wallets108 Startups, $408M Total FundingCompanies that offer consumers a place to securely store their bitcoins

Bitcoin Trust & Verification Services21 Startups, $214M Total FundingCompanies that help verify a bitcoin user’s identity for regulatory purposes

Blockchain Innovations178 Startups, $1.1B Total FundingCompanies that are working on blockchain distributed ledger technologies

Blockchain Technology Sector Trends & Insights

8

9

Investing into the sector is focused on blockchain innovations

The Blockchain Innovations category accounts for 33% of venture fundingand 17% of total companies in the blockchain technology sector

Venture Investing in Blockchain Technology

Companies are categorized by function, and therefore can exist in multiple categories. Data through May 2017

-

50

100

150

200

250

0.0

0.2

0.4

0.6

0.8

1.0

1.2

Co

mp

an

y Co

un

tT

ota

l Fu

nd

ing

($B

)

VC Funding Count

10

VC funding into blockchain tech is growing

Overall blockchain technology VC funding grew at a CAGR of 152% from 2011-2016, and 2017 is currently at 29% of 2016 funding

Blockchain Technology Funding Over Time

Data through May 2017

0.0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

To

tal F

un

din

g ($

B)

11

Blockchain technology VC funding is occurring mostly at early stage rounds

Blockchain Technology Funding Amount By Round

50% of 2016 VC funding into blockchain technology were Series A rounds

Graphs shows only the funding rounds listed therein, data through May 2017

0.0

0.1

0.2

0.3

0.4

0.5

0.6

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Fun

din

g A

mo

un

t ($

B)

Late Stage Series D Series C Series B Series A Seed

12

Blockchain technology startups founded in 2013 lead in VC funding

Startups founded in 2013 account for 27% of the sector funding over the last decade, and include companies like Circle, 21 Inc, and KnCMiner

Blockchain Technology Funding By Vintage Year

Data through May 2017

0.0

0.1

0.2

0.3

0.4

0.5

0.6

2008 2009 2010 2011 2012 2013 2014 2015 2016

To

tal F

un

din

g ($

B)

Year Founded

13

Blockchain technology startups are a global phenomenon

Blockchain Technology Startup Count by Country

0 350Companies

Data through May 2017

14

Investors into the sector tend to be specialists in blockchain technology

Selected Investor Activity in Blockchain Technology

The above count represents a subset of overall investor activity, data through May 2017

0

10

20

30

40

50

60

70

80

Nu

mb

er o

f In

vest

men

ts

Number of Investments Number of Companies Backed

15

Blockchain technology exit activity is dominated by acquisitions

Exit events within the blockchain technology sector grew by 1400% from 2011 to 2016, and 2017 is currently at 13% of 2016 exit events

Blockchain Technology M&A and IPO Events By Year

Data through May 2017

0

2

4

6

8

10

12

14

16

2012 2013 2014 2015 2016 2017

Nu

mb

er o

f Exi

ts

Public Acquired

Blockchain TechnologyQuarterly Notable Events

16

17

Recent blockchain technology funding statistics

There have been 36 blockchain technology funding events from January 2017 through March 2017

Recent Blockchain Technology Funding Round Counts

Graph shows only the funding types listed therein, data as of May 2017

0

2

4

6

8

10

12

14

Grant Seed Series A Series B Series C Series D Late Stage

Fun

din

g E

ven

t C

ou

nt

18

Recent blockchain technology funding events

Notable Recent Blockchain Technology Funding Events

Company Funding Type Amount Date

Venture $30,000,000 Jan 25, 2017

Series B $24,000,000 Mar 8, 2017

Series A $15,000,000 Mar 30, 2017

Equity Crowdfunding $15,000,000 Mar 22, 2017

Series A $10,400,000 Mar 29, 2017

Blockchain technology startups raised $148 million from January 2017 through March 2017

Data as of May 2017

About Venture Scanner

19

Venture Scanner is the foundation of your startup research

20

Our research and data keep you ahead of the innovation curve

Save Time and Money

Get immediate access to years of startup research

Leverage Technology

Realize the power of our landscaping technology

Stay Current

See all updates and developments

Many international Fortune 500 companies trust Venture Scanner to help them with their startup landscaping and reporting needs

Venture Scanner is your analyst and technology-powered startup research firm

Want to learn more about our blockchain report and database?

Click here or contact info@venturescanner.com to learn more