Report: $5 billion lost in investments to crypto entrepreneurs
Report: $5 billion lost in investments to crypto entrepreneurs
Blockchain

Report: $5 billion lost in investments to crypto entrepreneurs

By Amelia Tomasicchio - 19 Jan 2020

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According to a report conducted by the company Ternio, some crypto entrepreneurs received almost $5 billion in investments for their blockchain companies only to eventually shut down.

Over a period of almost two months, Ternio has interviewed more than 5000 companies founded since 2014 – 5,331 to be precise – to understand how the market growth is progressing during 2019.

The numbers are quite positive as far as the results of these companies are concerned, considering that only 18% have closed, while 2% have undergone an acquisition and therefore a change of ownership. Unfortunately, however, this 18% had received $4.7 billion in investments.

crypto ionvestments

The reason for these failures probably also lies in the fact that 60% of the founders of these crypto startups have no entrepreneurial experience.

Demographic data of crypto entrepreneurs

Most of the crypto entrepreneurs are male (94%); while in terms of ethnic groups, 63% are Caucasian, 17% Asian and 4% Indian. 

crypto-investments

With regard to the legal headquarters of these companies, the majority is based in the US, especially in San Francisco, but also in the UK (London), Russia (Moscow), Germany (Berlin) and China (Tokyo), which indicates that the country’s capital is always chosen, probably because of the greater networking opportunities and the presence of events related to blockchain and fintech.

Top companies by number of employees

Ternio’s report also identified which are the companies with the most employees: in the first place we find: 

  • Binance (1808 employees), 
  • DAV Foundation (1316), 
  • Bitmain (491), 
  • Huobi (476) 
  • Luno (435). 

The majority of the remaining crypto companies have less than 20 employees, with a two-year growth of 138% in the number of employees.

As far as Italy is concerned, there is no reference to it in the report, but another research has explained that there is an increase in investments in the blockchain area with a growth of more than 100% compared to 2018 and a total of 30 million euros.

 

 

Amelia Tomasicchio
Amelia Tomasicchio

As expert in digital marketing, Amelia began working in the fintech sector in 2014 after writing her thesis on Bitcoin technology. Previously author for Cointelegraph and CMO at Eido. She is now the co-founder and editor-in-chief of The Cryptonomist.

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