Rhino Data Releases A Report on China’s Blockchain Investment and Financing in 2019

News / 19.01.2020

Rhino Data published a report concerning blockchain investment and financing in 2019. It was released in collaboration with Xinhua Finance. The report includes a list of startups related to cryptocurrencies in China getting funding.

According to the report, in 2019, the number of investment and financing deals recorded was 245, and there was an aggregate of 3.5 billion USD in investments by some. The value is approximately half of what was recorded in 2018. Of all the investments, only 43 percent were for early-stage investments.

The renowned investment areas were blockchain news or market intel, exchanges, and DeFi. The report claimed that traditional VCs did not lead last year as the majority of investments were from emerging cryptocurrency funds. The pioneer blockchain company to experience a public market exit was Cannan IPO’d. The cities that tended to attract additional blockchain startups were Beijing, Shanghai, Shenzhen, and Hangzhou while second-tier cities were improving.

Traditional industries like exchanges (Bitfinex inclusive), mining, and financing platforms based on blockchain were included in the leading ten firms that obtained the highest funding. Other firms included a gaming startup and an e-commerce startup. Strangely, although the DeFi sector was able to attract numerous cryptocurrency enthusiasts, no startups from there were able to bring forth a leading ten winner last year.

Excluding exchanges and mining firms, the majority of these startups are still striving to seek a real value proposition.

The blockchain funding picture of China was greatly influenced by Chinese regulators’ sudden approval. Before the president of China endorsed blockchain, numerous Chinese entrepreneurs chose to launch their startups outside the country, even though they serve customers in China majorly.

However, the endorsement led to the emergence of firms like Huobi setting up shop in mainland China. Besides, China’s blockchain movement will likewise motivate technology giants, like Tencent and Alibaba, to do something about it. However, if China keeps allowing blockchain and not cryptocurrency, only investments backed by the government will appear in the future Rhino report.

 

Source: Cryptopress.

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Born in Bucharest, Marius is the founder of Crypto Adventure. Since his first contact with Bitcoin and cryptocurrencies, he never stopped believing that they are one of the most important innovations of our time, which will forever change the way business is done.