10% of early-stage startups are committed to blockchain: GSER 2021

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As venture capital funds seem to prioritize emerging technologies, the blockchain industry has experienced a large inflow of funds from corporate supporters.

According to the 2021 Global Startup Ecosystem Report released on Wednesday, blockchain-based companies account for 10% of global start-ups.

This number is part of a more important trend that has seen emerging technologies become a fast-growing sub-industry in terms of early funding.

The report divides start-ups into growth, mature and declining sub-sectors. Unsurprisingly, blockchain technology ranks in the first group with an average growth rate of 107%, in addition to agricultural technology (agtech) and new food, advanced manufacturing and robotics, artificial intelligence (AI) and big data, and financial technology .

According to the report, in terms of early funding, blockchain is the second fastest-growing sub-industry, with an increase of 121% in the past five years. Over the same period, the exit of early blockchain startups also increased by 52%.

Silicon Valley is still the main source of blockchain funding, and investors like Andreessen Horowitz often become supporters of decentralized ledger technology startups.

Since blockchain is one of the main destinations for early-stage venture capital, it is not surprising that Silicon Valley is at the top of the ecosystem value creation rankings according to the report.

Its methodology page explains that the Global Startup Ecosystem Report uses survey data from more than 10,000 start-up executives around the world.

related: Venture capital funds are optimistic about cryptocurrencies and increase investment in blockchain startups

Although GSER focuses on early support for startups, the details of the report are in line with the established bullish trend of blockchain in venture capital funds.

In April, Cointelegraph Consulting reported that venture capital firms have More than 16 billion U.S. dollars has been invested in blockchain equity since 2012.

In the first quarter alone, venture capital firms invested approximately $2.6 billion crypto and blockchain startup, In the total investment of companies in the industry in 2020, the north is 300 million U.S. dollars.

The scale of investment funds flowing into the blockchain field can also refute criticisms of the value proposition of emerging technologies.

Since cryptocurrency and blockchain often attract negative attention from policy makers, these multi-million dollar investments are critical to promoting the industry.