Bitcoin VC Funding is now over 30% of Fintech and catching up fast

This is one of a series called Explorations down the Bitcoin rabbit hole.

Actually this understates it, but more on that later. First the basics. I looked at data from Coindesk on Bitcoin VC funding and data from CB Insights on Fintech.

The Coindesk data is for Q2 and the CB Insights data is for 2013, so I multiplied the Coindesk data by 4 to get an annual run rate of $960m vs total Fintech over $3,000m. Thus the 30% headline number.

This understates the Bitcoin number. Where would we record the pre-mining that funds a lot of Bitcoin 2.0 start-ups?

However the bigger story is around momentum. Bitcoin startups only started to get serious money in the last 12-18 months. As some of these like Coinbase and Bitpay get real traction, this will pull in more funding. More importantly, the Bitcoin 2.0 platforms such as Ethereum, Maidsafe and Counterparty are getting funded through pre-mining and they are platforms to attack Fintech markets well beyond what we narrowly think of as Bitcoin today.

My guess is that if did the same analysis in Q4 of 2014, the Bitcoin run rate would be closer to 50% of total Fintech. Some time during 2015, this analysis will no longer be useful as most Fintech startups will use Blockchain technology in some way. By 2016, it will be like say “we use the cloud”.

This is one of a series called Explorations down the Bitcoin rabbit hole.

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