While the American legal system can be slow and complex, venture capital funds fly faster toward shaping the future. And prompted by Wyoming's recent legal advancement, we analyzed the top VC investors in the global blockchain space to understand how the money is flowing:
With a portfolio containing Decentraland, a digital life simulation game, and the collectible cat-avatar game Cryptokitties, the firm is also investing in daily real-world use cases. This includes investments in Decent, a startup seeking to make healthcare more affordable and accessible in the US, and Filament, an IoT startup applying blockchain to industrial and engineering use cases.
Beyond DCG, there are numerous other high-profile investors making significant moves. San Francisco-based Blockchain Capital is also betting on this technology—coming in second with 57 deals since its 2013 inception.
Biggest VC dealsWhile blockchain can be used for a variety of real-world applications, its use in fintech as the foundation for cryptocurrency and asset trading is still king when it comes to VC-backed investments.
BlockTower Capital, a hedge fund investing entirely in cryptocurrencies and digital assets, pulled in $140 million in October 2018, making it the third largest deal. While not a VC-backed startup in the traditional sense, a substantial amount of the funding came from prominent venture capital names including Union Square Ventures and Andreessen Horowitz.
Moving forward, the implications of recent legal advancements, such as in Wyoming, suggest venture capital funds may start to shift away from an obsession in cryptocurrency exchanges and toward real-world use cases involving physical and intellectual property. Healthcare, IoT, gaming and industrial applications are just a few prominent sectors to benefit from recognition of digital assets and blockchain-based data being considered personal property in the eyes of the law.