Fund Rising or Fund Resting?
From all “Big 4th” consulting firms’ collection of blockchain related publications, mostly consisting of senseless “predications” and borrowed “intelligences”, PWC’s “ICO/STOs” analysis proved to be sole useful sources of viable data (re: a series of my mid-2019 posts). Today I review their 28-pages-long “2nd Global Crypto M&A and Fundraising report” published April 1.
It matches PE deals (by number and amount) made between investors / funds and blockchain/ crypto companies during 2019 (540 deals totally) to those produced in 2019 (662 deals).
PWC concludes that deals market has dropped more significantly value vise (from USD 3.72 billion to 2.24 billion — 40%) than count vise (18%). It, basically, means that market’s continuing shift from small-caps into mid and big-caps has been exacerbated by lesser rounds valuation.
In 2018 it’d became obvious that as EU and USA regulators continue to punish crypto-investors they will be fleeing to Asian, Eastern European, Middle Eastern and African markets. That’s exactly what had happened in 2019 during which the share of Americas in a total number of deals dropped from 55% to 48%.
Also the sink from 11% to 7% in a portion of early-stage startups financed by investors had been registered during 2019 as VC funds, worried about their governements’ crack down on crypto, are reallocating their capitals to later stages companies.
This report is barely touching 2020 non-cellular entity craze by two-way stating that “crypto industry (is) not immune to global macro economic conditions”. However, it leaves everyone to guess what exactly PWC is trying to say — will the crypto-industry benefit from the hyper-inflationary cycle just started by FRS or disproportionately suffers from investors shying away from all types of risky assets.
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