May 17, 2020

Blockchain spending set to reach $9.2bn in 2021

Blockchain
IDC
Report
International Data Corporation
Jonathan Dyble
2 min
Blockchain
According to a report from the International Data Corporation (IDC), global spending on blockchain technology is set to more than double from the $945mn...

According to a report from the International Data Corporation (IDC), global spending on blockchain technology is set to more than double from the $945mn recorded in 2017 to $2.1bn this year.

“2017 was the year of experimentation as enterprises realized both the benefits and challenges of blockchain,” said Stacey Soohoo, Research Manager, Customer Insights & Analysis. “2018 will be a crucial stage for enterprises as they make a huge leap from proof-of-concept projects to full blockchain deployments.”

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In line with this, the IDC is expecting a sustained level of growth of the blockchain market between now and 2021, predicting a compound annual growth rate (CAGR) of 81.2% between 2016-2021.

The US is expected to lead this as a leader of blockchain innovation and integration, with a heavy blockchain investment expected to come within the financial services and manufacturing industries, amongst others.

“With increased investments driven by pressures to keep up with the accelerating pace in innovation, the world will continue to look to the U.S. for guidance as other regions forge ahead in their own blockchain projects and initiatives,” Soohoo continued.

For more information regarding the diverse use of blockchain technology across a wide variety of industries, see Beyond cryptocurrency: Eight alternative uses of blockchain.

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Jun 18, 2021

Start-ups receive $60 billion investment, smash 2020 record

techstartups
investment
Technology
Laura Berrill
2 min
Europe’s tech sector start-ups attracted more venture capital investment in 2021 than the whole of 2020 with the UK leading in tech policy

Start-ups on the continent have raised a massive 43.8 billion euros ($60.9 billion) in just the first six months of 2021, according to figures from Dealroom, surpassing the record 38.5 billion euros invested last year..

This is despite the fact that the number of venture deals signed so far is around half the amount agreed in 2020. Only about 2,700 funding rounds have been raised so far this year, compared to 5,200 last year.

Prime examples in times of change

Examples are Swedish buy-now-pay-later firm Klarna which has raised more than $1.6 billion in two financing rounds, the German stock trading app Trade Republic received $900 million in May and British payments provider Checkout.com snapped up $450 million at the start of the year.

The figures suggest that European tech firms are pulling in far larger sums of money per investment than in previous years, which defies the economic uncertainty of the pandemic and boosted online services enormously.

The CEO of Checkout.com, Guillaume Pousaz, said start-ups have often been created in times of crisis, citing the emergence of several new financial technology companies in the wake of the 2008 global financial crisis.

He added that big transformational change was often the time when there is the emergence of a lot of new start-ups, sometimes when people are losing their jobs for associated reasons.

UK leading the charge

Scale-Up Europe, a group that includes the founders of UiPath and Wise, proposed 21 recommendations to help the region build “the next generation of tech giants.” Among the suggestions are tax credits to corporates for investing in start-ups and regulatory changes that adapt to new innovations.

Sebastian Siemiatkowski, CEO of Klarna, said the U.K. leads Europe when it comes to tech policy, and that there were a number of regulatory issues needing to be addressed before the European Union can produce tech giants of its own.

Siemiatkowski highlighted EU regulation of web cookies as an example of “poor regulation.” Yet, as the number of $1 billion start-ups in Europe continues to grow, the number of exits in the continent is also increasing. 

This year has already seen some notable acquisitions, including Etsy’s $1.6 billion purchase of U.K. fashion resale app Depop and JPMorgan’s takeover of London robo-advisor Nutmeg.

As for stock market listings, a number of notable debuts have taken place in London in particular, including food delivery app Deliveroo, cybersecurity firm Darktrace and reviews site Trustpilot. Money transfer giant Wise, formerly known as TransferWise, plans to go public in the U.K. capital soon.

 

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