It appears Bitcoin technology is not just getting attention for techno-savvy people but from venture capitalists as well as according to a study conducted recently, a lot of capital is being invested in the digital currency companies. At least from various startups receiving investments from the venture capitalists shows that the study was right about the observation.
In the study conducted by Mattermark where Tomasz Tunguz of the venture capital firm Redpoint, analyzed the data comes the sparkling observation that Bitcoin and space travel were two of the four fastest-growing areas for startup investment in the past three years. Nonetheless, two of the industries’ most historically owned by the government are now venture capital targets.
Thus, money and spaceships which has been the sole domain of the governments over the centuries are now opening up for private entities that want to explore the potential available. The study also concludes that the seven fastest-growing investment areas have seen funding levels double every year on average since 2012, according to this data.
Interestingly, the study shows that for some of these, it’s partially a result of the level of investment in those areas. For instance, whereas Bitcoin-related startups received just 0.18% of all startup funding in the last 12 months, the study shows space travel just less than 1%. Thus, though mathematically, it’s “easier” to grow fast when investment is low.
Money is pouring in for Bitcoin Startups
It is being noticed that with more than $800m so far invested in Bitcoin and blockchain technology startups since 2012, it is safe to assume, venture capital is pouring in to Bitcoin startups. The venture capitalists are certain captivated and at the same time see huge potential in the disruptive technology that can have lasting impact the way money has been perceived.
It is estimated that investments in the industry have already exceeded the cumulative total for 2014, with more than $380m pledged to startups in publicly announced funding rounds this year. Nonetheless, data indicates nearly 200 VC firms have invested in Bitcoin companies, a total that excludes the many individual and angel investors.
Some leading venture capital firms like Khosla Ventures, Boost VC, AME Cloud Ventures, Lightspeed Venture Partners, Ribbit Capital, Union Square Venture, etc. are heavily involved into investment in Bitcoin startups. With such names in the list of venture capitalists ready to seed in their money, Bitcoin may see new highs.
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