Did you know that more than 3,000 venture capital agreements were signed with the blockchain worldwide between 2012 and 2020? Cointelegraph Consulting has put together the most comprehensive dataset of all blockchain venture capital to date. The new 59-page report, which covers more than $ 16 billion invested by 928 different angels, venture capitalists, incubators, and companies, is the most in-depth analysis ever made in the blockchain venture capital industry.
The Cointelegraph Blockchain Venture Capital Report has conducted exclusive interviews with the most influential venture capitalists, including TRGC’s Etienne VantCruis, #Hashed’s Gene Kang, Draper Goren Holm Funds Alon Goren, PNYX Ventures’s Stefan Wong, Rarestone Capital’s Kamron Miraftab and Michael Anderson. Framework Ventures and Ryan Taylor of Dash Investments.
Read the full report here.
The report is divided into three main sections, including information related to start-ups, venture capitalists (full partners), and investors (limited partners). Here are the highlights of the report.
The coin ventures that were popular for risky deals in 2020 included: Avalanche (AVAX), Curv (CRV), DerivaDEX (DDX), Nervos Network (CKB), and Zilliqa (ZIL) to name a few.
Many blockchain venture capital funds have overtaken traditional venture capital funds. While traditional funds have reported double-digit returns, many blockchain mutual funds have earned ten times their profits. Aside from impressive returns, blockchain focused mutual funds also have a low correlation with traditional asset classes.
For example, the BCAP Blockchain Capital token’s association with equity indices falls in the range 0.00-0.14. The potential diversification potential for investors interested in venture capital is evident.
Subscribe to Cointelegraph Consulting’s report
Jointly, you accept us
In the shadow of COVID-19, venture capital investments in the blockchain industry have come under strong economic pressure. Between 2019 and 2020, blockchain venture capital investments decreased by 13%, while traditional venture capital investments increased by 18%. Global investment capital investment in the blockchain decreased from $ 3.17 billion in 2019 to $ 2.77 billion in 2020.
In 2020, the hot trend for blockchain-based venture capital transactions has been decentralized financing. More than 200 projects and hedge funds are betting on the future of more than 100 DeFi projects. More than $ 20 billion in capital is currently tied to the DeFi protocols.
To learn more about becoming a DeFi member, read Cointelegraph Consulting’s complete DeFi guide here.
For companies involved in Series A financing, price to sale (P / S), price to balance sheet (P / B) and price to earnings per share (P / E) are common measurement multiples used in determining the value of blockchain private equity. Some private cryptocurrency companies are astronomically higher than FANG stocks. For example, a cryptocurrency company pooled its capital with a price-to-earnings multiplier of 110.
By comparison, Apple’s P / E ratio was hovering around 24 under the Coronavirus, but peaked at 41.93 in December 2020. However, this is somewhat similar to the apple and orange comparison. However, venture capitalists who support nearly a record number of startups indicate that these investment firms need to generate more capital than they received, and they should do so in a highly volatile environment.
To see which sectors major venture capitalists believe will be popular in 2021, read the full report. The report also examines the tax implications of investing in private blockchain capital across countries, how to analyze discounted cash flows on publicly traded exchanges, such as Coinbase or Kraken, and the advantages and risks of cryptocurrencies.