Recently, we analyzed the top 100 banks (by AUM) investing in blockchain/cryptocurrency to understand the key use cases they support and which new banks have entered the space over the past 10 months.
We also reviewed the blockchain investment activity of the top 100 public companies (by market capitalization) to see what has changed, which areas of blockchain are receiving the most attention, and which new entrants are now invest.
In this brief , we take a deep dive into blockchain investments made by these top companies between September 2021 and mid-June 2022, using funding data from CB Insights.
During this time period, 40 businesses have invested in companies in the blockchain/cryptocurrency space. Samsung was the most active, investing in 13 companies. United Overseas Bank came in second with seven investments, followed by Citigroup with six and Goldman Sachs with five.
In most cases, we cannot determine how much money these companies have invested because they have participated in financing rounds with multiple or many other investors.
However, with this data, we can look at the total amount of financing rounds they participated in.
Based on this, investors actively participating in the largest funding rounds are Alphabet ($1.506 billion in 4 rounds), Blackrock ($1.171 billion in 3 rounds), Morgan Stanley ($1.1 billion in 2 rounds), Samsung ($1.17 billion in 2 rounds) $979M in 13 rounds), Goldman Sachs ($698M in 5 rounds), Bank of New York Mellon ($690M in 3 rounds), and PayPal ($650M in 4 rounds).
The 40 companies invested around $6 billion in blockchain startups between September 2021 and June 2022. Since some financing rounds involve the participation of multiple investors, it is unclear how much each company is investing in a project.
Although not on the current list of leading investors, Mastercard is still actively involved in the integration and development of inorganic technologies. Until September 2021, Mastercard was one of the top three active investors based on the number of deals involved. But since then, Mastercard has mainly conducted incubator and accelerator programs for 4 blockchain startups. In September 2021, it also acquired crypto intelligence firm CipherTrace to support its cybersecurity solutions, maintaining its leadership in digital assets.
On the banks side, while Citigroup and Goldman Sachs remain the major investors, United Overseas Bank, Commonwealth Bank of Australia, Bank of New York Mellon and Morgan Stanley also jumped to the top of the list.
What use cases are top companies investing in?
A total of 61 blockchain/cryptocurrency companies received investment in 71 investment rounds. These blockchain companies are active in more than 20 segments and 65 use cases:
- 19 companies offer some form of NFT solutions and services. Many of these belong to segments such as gaming, arts and entertainment, and distributed ledger technology (DLT).
- A total of 12 companies are marketplaces, some of which support the buying and selling of NFTs.
- 11 institutions offer gaming services. For companies offering NFT solutions, marketplaces, and games, there is considerable overlap in their use cases.
The popularity of NFTs can be seen primarily as an opportunistic move by businesses looking to capitalize on the trend to satisfy their customers’ transactions. Startups raising capital are developing platforms that allow users to buy and sell NFTs, including virtual land, clothing and other branded items, enabling commerce in a decentralized world.
Other prominent cases
- Seven companies offer blockchain services. ConsenSys received one of the highest funding rounds in the statistical time frame (a $450 million deal involving Microsoft).
- Five companies focus on infrastructure.
- The four companies focus on blockchain development platforms, dApps, smart contracts, asset management/tokenization and scaling solutions.
- Three companies provided custody solutions and raised high-value funding: Fireblocks ($550 million with Alphabet), Circle ($550 million with Blackrock), and Anchorage Digital ($350 million with PayPal and Blackrock).
Different ways of investing in listed companies
Samsung is betting on the entire blockchain ecosystem, investing in companies focused on 15 different use cases, such as blockchain services, development platforms, NFTs, and social networks. Alphabet and Blackrock, on the other hand, are demonstrating an entirely different strategy, making concentrated bets on a smaller group of companies.
That said, businesses are exploring specific use cases and combinations to complement their core offerings. For example, HERE Technologies invested in UNL, a blockchain-based location and mapping technology company, to implement blockchain-enabled security and transparency measures in a location/mapping environment.
Banks have started increasing their exposure to cryptocurrencies and blockchain services in light of increased customer demand, which has prompted them to invest in cryptocurrency custody, asset management and trading.
As for traditional players (Samsung, Microsoft, etc.), they are already supporting the development of blockchain, as can be seen from the funding trends over the years. Now, it’s a matter of finding innovative companies and portfolios that add value to their core business growth and integration. Like banks, businesses may want to move away from the standalone trend and focus on market segments that can provide them with synergistic growth.
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/which-blockchain-projects-have-google-samsung-tencent-and-global-listed-companies-invested-in/
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