Google, Goldman Sachs emerge as most active Blockchain Investors
According to CB Insight’s report, Goldman Sachs Group Inc. stands as the fifth most active corporate blockchain investor. It has been involved, since 2012, in four companies focused on the distributed-ledger technology. It invested in software developer Digital Asset Holdings, payments company Circle and Axoni, a provider of blockchain infrastructure for capital markets.
SBI Holdings, a Japanese broker and venture capital firm, has emerged at the top when they invested in eight blockchain companies, such as cryptocurrency exchange Kraken and Ripple.
Alphabet Inc.’s Google is the second most active given that it made six investments ranging from Storj, data storage provider, to LedgerX, cryptocurrency derivatives-trading platform and Veem, a merchant services provider. Overstock.com Inc., which is opening a cryptocurrency exchange stands as the third most active, and Citigroup Inc. as the fourth.
The data shows that the financial sector has been the most active given the role of the blockchain technology in the transfer of money. In fact, all 10 of the largest U.S. banks by assets have been involved in the sector, investing $267 million in six blockchain companies and one consortium.
Venture capital firms are investing vigorously in blockchain companies, whereby the top three most active firms ranked by number of portfolio companies are Digital Currency Group, Blockchain Capital and Draper Associates.
ICOs have also been raising above the historical average of $3 million for early-stage blockchain deals, when compared to traditional venture financing in the sector. CB Insights found that on a quarterly basis, total funding to blockchain companies raised by ICOs surpassed total funding raised via traditional equity financing for the first time in the second quarter in 2017.