With venture capital funding apparently prioritizing emerging technologies, the blockchain industry is experiencing a significant influx of capital from companies.
According to the Global Startup Ecosystem Report 2021 published on Wednesday, blockchain-based companies represent 10% of startups worldwide.
This figure is part of a larger trend that has seen emerging technologies become a fast growing sub-sector in terms of seed funding.
The report divides startups into growing, mature, and declining sub-sectors. Unsurprisingly, blockchain technology is in the first group, where the average growth rate is 107%, along with agricultural technology (agtech) and novel foods, advanced manufacturing and robotics, artificial intelligence (AI) and big data, and fintech.
According to the report, blockchain is the second fastest growing sub-sector in terms of seed funding, growing 121% over the past five years. Exits among early-stage blockchain startups also increased by 52% over the same period.
Silicon Valley remains one of the main sources of blockchain funding, with investors like Andreessen Horowitz regularly among the donor pool for decentralized accounting technology startups.
With blockchain among the top destinations for early stage venture capital funding, it is perhaps not surprising to see Silicon Valley leading the rankings for ecosystem value creation according to the report.
The Global Startup Ecosystem Report used survey data from more than 10,000 startup executives around the world, explains its methodology page.
Related: VC funds are bullish on crypto, increasing investments in blockchain startups
While the GSER focuses on supporting early stage startups, the details of the report are in line with the established uptrend for blockchain among venture capital funds.
In April, TBEN Consulting reported that venture capital firms had invested more than $ 16 billion in blockchain equity since 2012.
In the first quarter alone, venture capital firms invested around $ 2.6 billion in crypto and blockchain startups, a figure of $ 300 million north of the total business investment in the sector for the last quarter. set of 2020.
The scale of investment funds flowing into the blockchain space also serves as a counterargument to critics against the emerging technology value proposition.
With crypto and blockchain often drawing negative attention from policymakers, these multi-million investments could be critical in promoting the industry.