Altcoin News: Token Sales Still Bring More Money to Blockchain Firms Than Venture Financing

August 8, 2019, by Marko Vidrih on ALTCOIN MAGAZINE

In the first half of the year, the sale of tokens brought blockchain companies almost 2 times more funds than traditional equity investments, a new report from the analytical company teQatlas testifies.

According to the report, blockchain startups raised $2.095 billion in the first half of the year through the issuance and distribution of tokens, while $1.248 billion was invested in venture capital investments. A total of 2,500 blockchain companies and 1,800 investment firms were analyzed.

Analysts conclude that investors are still inclined to consider blockchain startup offers as highly profitable investments. Venture capital investments in this space have been growing for four and a half years. Their total amount for the period under review amounted to $9.2 billion.

However, in 2018 alone, $15 billion was raised through the sale of tokens, analysts say. Although the value significantly decreased in the first half of 2019, it is still almost 2 times higher than the volume of venture financing.

As for the number of traditional rounds of attracting financing, in 2017 there were 196, in 2018–450, in the first half of 2019–115. For token sales, the indicators are 282, 460 and 153, respectively.

In the first half of 2019, token sales accounted for 56% of all transactions in this space. In the context of traditional financing, the lion’s share is venture capital transactions in the early stages of project development.

At the same time, teQatlas analysts note that since 2018, there has been a trend towards a decrease in the volume of financing attracted through token sales, by months and quarters.

Author: Marko Vidrih

Images credit: teQatlas