While venture capital funding is seemingly prioritizing emerging technologies, the blockchain industry is experiencing significant inflows of capital from corporate supporters.
According to the Global Startup Ecosystem Report 2021, released Wednesday, blockchain-based businesses account for 10% of global startups.
The figure is part of a more significant trend that has seen emerging technology become a fast-growing sub-sector in terms of early-stage funding.
The report divides startups into growing, mature, and declining sub-sectors. Surprisingly, blockchain technology is in the first group, with an average growth rate of 107%, including agricultural technology (Agtech) and new food, advanced manufacturing and robotics, artificial intelligence (AI) and big data and fintech.
Blockchain is the second fastest-growing sub-sector in terms of initial funding, which has grown by 121% in the last five years, the report said. Exits among blockchain startups in the early stages also increased by 52% over the same period.
Silicon Valley remains a major source of blockchain funding, with investors such as Andreessen Horowitz among supporters of regular decentralized laser technology startups.
With blockchain among the main destinations for early-stage VC funding, it is not surprising to see Silicon Valley at the top of the ecosystem value creation rankings, according to the report.
The Global Startup Ecosystem Report uses survey data from more than 10,000 startup executives worldwide, explains its method page.
Related: VC funds shine in crypto, boost investment in blockchain startups
Although GSER focuses on early support for startups, the details of the report are consistent with the established bullish trend of blockchain among venture capital funds.
In April, Cointelegraph Consulting reported that VC firms have invested more than 16 16 billion in blockchain equity since 2012.
In Q1 alone, VCs accounted for about 2 percent of crypto and blockchain startups. has invested billions of dollars, which is উত্ত 30,000 million of the total corporate investment in the sector in 2020 as a whole.
The scale of investment funds flowing into blockchain space also serves as a protest against criticism against emerging technology price proposals.
While crypto and blockchain often attract negative attention from policymakers, this multi-million investment could be important to boost the industry.