Blockchain investment still lags behind fintech despite record-breaking 2018

Blockchain investment still lags behind fintech despite record-breaking 2018

European blockchain technology companies had a record year in terms of VC investment in 2018, although overshadowed by funding going into financial technology (fintech) companies.

According to Innovate Finance’s ‘2018 FinTech VC Investment Landscape‘ report , the European blockchain and cryptocurrency industry witnessed a series of significant deals, but notably just four deals amounted to over $300 million.

Paxos delivers blockchain solutions for financial institutions, including Bankchain, a settlement platform seeking to transform post-trade activity across capital markets. It raised $65 million in May.

Dfinity is a blockchain-based cloud computing project. It’s registered as a non-profit in Switzerland and operates research centers in California and Germany. Dfinity raised $65 million in August.

Based in Switzerland, SEBA Crypto is seeking to build a bank offering cryptocurrency services to companies and investors. It raised $103 million in September.

Headquartered in San Francisco, but with offices across Europe, Bitfury develops software and hardware solutions to help organizations and individuals move assets across the blockchain, and it closed an $80 million round in November.

Blockchain trailing behind in the UK

Further analysis shows fintech firms such as Revolut and N26 proved more popular than blockchain among investors. Indeed, challenger banks raised some $461 million across 7 deals. 

This was closely followed by businesses operating in the personal finance and wealth management ($333.61 million), and alternative lending and finance ($306.64 million) industries.