In a new report dedicated to the analysis of fintech venture funding, the companies suggest that blockchain “is not a silver bullet” able to solve every problem but is still worth investing into.

Starting with an outline of the victories won by distributed ledger, the chapter on bitcoin's blockchain highlights the significant increase of interest towards the technology over the last year:

“Interest in blockchain technologies grew significantly in 2015, with VC investment in particular growing from $298 million in 2014 to almost $460 million this year. This interest in distributed ledger technologies is remarkable given that 5 years ago, it was barely a blip on investors’ radar,” the report reads.

Listing Citibank, Santander, Wells Fargo, and HSBC among newcoming blockchain adherents, the report cites IBM's open source blockchain initiative undertaken jointly with “numerous partners, from the London Stock Exchange to technology companies like Cisco and Intel.”

The challenges associated with blockchain include scalability issues, comparatively law availability (those using archaic devices are ipso facto excluded from blockchain adoption), and the lack of regulatory acceptance. Once faced, these challenges can lead to the development of innovative/creative approaches.

Still, for the time being, investors are advised to “look beyond the hype and ensure that any technology solution is underpinned by exceptional engineering, a full understanding of the barriers, and clear economics on the cost and benefits associated with the technology.” For these ends, KPMG recommends “selective and targeted experimentation” and highlights its own commitment to supporting and conducting such.

KPMG is a network represented in 155 countries and providing audit, tax and advisory services. CB Insights is a database of daily real-time information about venture capital investments.



Maria Rudina