The risk capital invested in Bitcoin in 2014 already exceeds the total capital of the previous year (USD 27 million) by 30%. In 2014, USD 113.2 million have been invested in new Bitcoin companies to date. This is already USD 88 million more than in 2013. 2.1 million were invested in Bitcoin start-ups in 2012.
Crypto trader investment in Bitcoin
Measured by the number of crypto trader investments, 500 startups had the most to carry. The company invested in 5 startups. The Bitcoin Opportunity Fund, Tim Draper and crypto trader Currency Partners also each made 2 investments.
Most of Bitcoin’s investments went into the trading exchanges. With 7 investments, they were able to land approx. 21 million USD. Measured by the number of Bitcoin Investments, financial service providers and payment processors can look forward to second place.
The most active Bitcoin investors
Measured in terms of investment volume, however, payment processors are in the lead with USD 31 million. Wallet service providers, mining companies and trading exchanges each rank behind with around 21 million USD.
BitPay got the biggest slice of the cake with a record USD 30 million in May. The payment processor also received USD 2.1 million Bitcoin Investment last year. The investment round included Peter Thiels Founders Fund, Sir Richard Branson and Yahoo co-founder Jerry Yang. BitPay CEO Tony Gallippi stressed that the new capital would be used to rescale operations.
Perhaps as a sign of the fast growing Bitcoin ecosystem, the investment can be seen in two new starups at the other end of the system. BitFury, with $20 million Bitcoin investment, represents an important part of Bitcoin’s infrastructure: extremely fast ASIC miners. Xapo received an almost equal stake in Bitcoin Investent. The company promised Bitcoin to process transactions via debit cards and to develop wallets with a higher security standard.
These five companies have received the largest portion of Bitcoin’s investment to date, USD 97 million or 84%.
Largest Bitcoin Investment Rounds
Bitcoin Investment VolumeAlthough Bitcoin is growing at a global level, the USA is the clear favourite for new startups. Approximately USD 172 million of the total Bitcoin investment was invested in companies based in the USA – that is approximately 75% of the total volume.
The figures clearly show that Bitcoin start-ups are attracting more and more venture capitalists. As the trend continues and more and more human and financial capital flows into the Bitcoin industry, one can assume that Bitcoin “cops” will continue to have reason to cheer.