According to PwC Asia and Europe are The New Lands of Crypto Fundraising


April 6, 2020 4:31 pm

According to PwC Asia and Europe are The New Lands of Crypto Fundraising
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According to a report by Big Four auditing firm PricewaterhouseCoopers (PwC), most of the fundraising in the cryptocurrency space moved from the Americas to Europe, the Middle East, and Africa (EMEA), and the Asia Pacific regions (APAC).

Fundraising efforts in the crypto space obtained 18% less funding, while funds in mergers and acquisitions (M&As) in the space decreased by 40%, according to PwC’s 2nd Global Crypto M&A and Fundraising Report, of 2019.
As funding reduced, APAC and EMEA’s share got bigger. Where APAC and EMEA detected 44% of joined fundraising and M&A deal value in 2018, in 2019, that percentage increased to 51%. During the same period, the share of joined fundraising and M&A deal value of America reduced from 55% to 48%. This proves that the reduction in the number of funds in the crypto space was more noticeable in America than in other regions.

Fundraising and M&A value by region, 2018 and 2019. Source: PwC 

Role of APAC and EMEA regions In Crypto Fundraising

PricewaterhouseCoopers (PwC) foresees the transfer from the Americas to the above-mentioned regions to continue during 2020, stating:

“2019 saw APAC and EMEA play a bigger role in the global crypto M&A and fundraising space. We expect to see this trend to continue in 2020. In particular, we expect to see more activity from APAC and EMEA based family offices looking at the market turbulence as a good time to enter the market.”

PricewaterhouseCoopers (PwC) declares that the cryptocurrency industry proceeded to evolve in 2019 as stocks began travelling to later-stage companies, 71% of funds were grown by seed-stage firms in 2018 however, in 2019 seed-stage companies received 59% of total funds.

Crypto firm fundraising by development stage, 2018 and 2019. Source: PwC 

Funding for Crypto Startups

The data of PwC shows that not only did funding for crypto firms decline but funds proposed for early-stage startups also shortened. At the end of 2019, after funding in the space peaked at $5.5 billion, less than $3 billion circulated into the crypto ecosystem in 2019.

Jack Dorsey, Twitter co-founder and CEO, who also founded crypto-friendly payments firm Square, recently announced a grants program for open-source Bitcoin (BTC) development to help improve the ecosystem.

This formalizes the already important contributions made by the company toward the cryptocurrency.

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