Market Overview

Venture Capitalists Pouring Money Into Bitcoin

Venture Capitalists Pouring Money Into Bitcoin

A recent study by Mattermark showed that venture capitalists have become increasingly interested in bitcoin companies. Since 2012, more than $800 million has been invested in digital currency startups as investors take notice of what many are calling a disruptive technology.

Why Bitcoin?

One of the major reasons VC firms are so interested in bitcoin and blockchain technology startups is their potential for high growth. Over the past 12 months, bitcoin-based startups garnered just 0.18 percent of the total funding for startups. Because investment in the sector has been low, many believe it will be easier for bitcoin firms to grow quickly. For that reason, investment in cryptocurrency startups has increased by 151 percent since 2012.

Related Link: Wedbush Predicts A Bright Future For Bitcoin

What's Next?

The increased investment could help propel bitcoin into mainstream use in the coming years as more and more entrepreneurs look for ways to integrate bitcoin into everyday life. While the cryptocurrency still suffers from a tarnished image due to several high profile hacking attacks and scams, many believe that it will continue gaining momentum in the coming years.

Digital currencies have proven relatively resilient, leading some entities like the Bank of England to look into how they can fit in with traditional finance models.

Where Else?

The report showed that bitcoin wasn't the only space VC firms are interested in these days. Photo sharing, physical storage and space travel were also popular investment options for investors looking for high growth startups.


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