In the venture capital circle, if you ask investors what kind of industry is the recent investment boom? There may be many kinds of answers: artificial intelligence, business services, consumption upgrades, cultural entertainment, health care...
However, the extent of these industries in the first quarter of 2018 seems to be inferior to the blockchain.
On April 8th, the latest data released by IT Orange showed that 41% of the projects that received investment in the first quarter of 2018 were blockchain projects. The newly established company in this field has achieved an investment rate of 92% in the quarter.
"After all, this area has large profits. Cai Wensheng, Chen Weixing, Xu Xiaoping and others have earned so much money, and everyone who reads is jealous." A blockchain investor said to China Fortune Fortune.
New blockchain company's investment rate was 92%
On April 8th, the latest data released by IT Orange showed that 41% of the projects that received investment in the first quarter of 2018 were blockchain projects. Among them, 11 newly-established blockchain companies in the first quarter were voted by the CCP, and the investment rate for the quarter reached 92%. The main business of the blockchain project mainly includes media and virtual currency.
It can be said that since the second quarter of 2017, the virtual currency has been the most concerned about the blockchain. IT orange data shows that in the first quarter of 2018, 22 virtual currency investing companies were involved, which accounted for 37.3% of the investment projects in the blockchain field.
“The number of virtual currency projects that receive investment should be more than the statistics.” BABI Financial's former COO, MoveBlock Capital Chief MarketAnalystFish Wenhui said to China Fortune Fortune that there are currently two ways VCs invest in virtual currency circuits, equity investments or tokens. In terms of projects, virtual exchanges are one of the main investment directions.
At present, the regulation of virtual currency such as Bitcoin has become increasingly strict in various countries. In September last year, seven central banks and other ministries issued an urgent request to stop the ICO and asked the virtual currency exchange to shut down all trading activities in China.
In spite of this, the virtual currency trading platform is another way, and it is still the focus of various funds. Some investors stated that they generally invest in foreign companies. In fact, the previously existing trading platform is nominally closed, but after some projects are registered overseas, they can continue to trade in the name of an offshore platform.
In addition to virtual currencies, blockchain vertical media is very hot at the beginning of the year. Data shows that in the first quarter of 2018, a total of 12 blockchain media were financed, which is three times the sum of last year.
In particular, after March, blockchain vertical media frequently reported financing news, the most notable of which was Mars Finance. On Mar. 6, Mars Finance announced that it had obtained Round A financing with an estimated RMB 150 million. At that time, it was only 26 days before Mars Finance got online.
Also in March, Block House, Money News, Block Connections, Gyro Finance, and Deep Chain Finance were successively funded. IDG Capital, Ming Capital, Meihua Angel, PreAngel and other organizations all have vertical block layouts in the blockchain.
The wave of public opinion driven by the media has been wave after wave, even more so than the application of blockchain exploration outsiders are happy to see.
Although blockchain media emerged for a short period of time, platforms for stably outputting high-quality content are rare. At the same time, there are problems such as lack of specialization and lack of verification of the authenticity of events. He Huan, chief executive of Blackstone's blockchain, said that there is still a lot of room for entrepreneurs to export content in blockchains.
Taken together, the excellent performance of the blockchain project in terms of financing in the first quarter was felt by a number of people in the industry who do not have anything to do with the “3 o'clock exchange group”.
"After all, this area has huge profits, and the capital is profitable. Cai Wensheng, Chen Weixing, and Xu Xiaoping have earned so much money, and everyone who reads has been jealous." A blockchain investor said to China Fortune Fortune, "After some 90's Many of the brothers are tens of millions or even billions of dollars, because of the blockchain."
Blockchain investment institutions get together
Undoubtedly, the period from the emergence of new technologies to rapid development is getting shorter and shorter. Especially in the era of mobile Internet, users' acceptance of new technologies is almost exponentially increasing. "If you have a friend who is a blockchain community, you will have 600,000 new users in one day," said the blockchain investor.
This makes it particularly anxious for venture capitalists who should be at the forefront of new technologies.
Since last year, some investors have entered into the running, and blockchain investment institutions have emerged. According to incomplete statistics, the fund agencies of Bitcoin's richest man Li Xiaolai and former vice president of Huaying Capital Zhang Yu and others established a special blockchain project, accounting for about 20% of all new institutions last year.
A person in charge of the blockchain investment agency said that as of last year, all the funds raised by the agency had been invested, so he wanted to make a transition and simply replace the ALL IN blockchain.
What is the difference between blockchain investment institutions and traditional VCs? Founding Capital CEO Feng Chi has said that the traditional VC projects may take three to five years to withdraw. The blockchain is much faster, it is almost half a year, the time period is reduced by about ten times, and the process from Angels to IPO is completed.
"Everyone said that the blockchain is not asleep. You have gone from Angels to Pre-IPO in a few months. How do you sleep? You don't have time to sleep," Feng Chi said.
In addition, a number of traditional VCs have also actively entered the blockchain field. Earlier this year, Zhenhuan Xu Xiaoping’s remarks that "the blockchain revolution has arrived," was announced in a large group of 500 people. He said: "This is a revolution in which the communists are defying the tide, and it will overthrow the tradition and will be better than the Internet. The mobile internet has come more quickly and thoroughly."
In fact, many investors believe that blockchain gives startups the opportunity to subvert BAT, and therefore miss BAT investors in the Internet age and hope to find BAT in the next era.
Zhao Wei, founder of Fulink Technology, believes that the classical BAT giants who grew up in ancient China will disappear sooner or later.
First, after the DNA of a company is determined, it is difficult to change in the middle. Zhao Wei said, “In the Internet age, Sohu and Sina have tried to do instant messaging software, but none have done QQ, and Tencent wanted to do e-commerce. There is no success.” With the changes of every era, giants are changing, and companies that have grown up under the previous historical conditions may not continue to be huge in the new era.
In addition, the rapid development of Alibaba and Tencent also benefited from financial support. With the help of third-party payment, it created the status of a business empire, but after the application of blockchain in the payment field, third-party payment will be severely impacted. In particular, the central bank’s digital currency will dispel the third-party payment platform.
But investors also remind blockchain enthusiasts to be careful about cutting leeks. There are two or eight stock market rules, in the digital currency area is 2 to 98, 98% may have been harvested, investing in digital currency to be clear, they are not that 2%, there are blockchain investment institutions in charge of the wealth of Huaxia Jun said: "I have also been cut leeks."