Rate Of Bitcoin/Blockchain Startup Funding Starting To Slow

A new report from New York-based financial analyst firm CB Insights has revealed both good and bad news about the state of blockchain and Bitcoin startups in relation to the funding that they receive from outside investors.

The CB Insights report says that during 2016, blockchain and digital currency startups around the world received a total of $550 million in funding, a figure that is up five percent from the $524 million in funding that similar startups received in 2015. The good news is that funding is still increasing, meaning that there are still people with ideas out there in blockchain and Bitcoin that are worth putting money into. The bad news though, is that the rate has slowed down.

In 2012, bitcoin and blockchain startups received virtually no funding. That shot up to $93M in 2013, and almost quadrupled to $357M in 2014. 2015 saw an increase of around a third to $524 and then just another five percent last year. The number of actual individual investments also dropped in last year from 161 in 2015 to 132 in 2016. Looking closer at the CB Insights analysis as well, it appears that during each quarter of 2016, the investments were less, with the bulk of the $550M being funded during the first two quarters.

The report offered no conclusions or reasons as to why this is happening, it just provided the raw data.

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