The pandemic and resulting economic toll has presented challenging headwinds for startups. In this post we look back on Q2 ending funding trends for blockchain technology startups to determine the trajectory of innovation in this emerging technology sector.
Below we see that the number of funding events per quarter has been on a downward trend, with 18 deals closing in Q2. This implies that new innovations in the blockchain technology sector are slowing down as measured by the volume of disruptive companies attracting investments.
In addition, below we can see that the average funding per deal has also been on a downward trend with an average deal size of $6M in Q2. This implies that the market remains cautious on the traction and growth potential of these blockchain technology startups.
In summary, not only is the number of blockchain technology funding events cooling off, but the startups that are attracting money are raising smaller sums. We’ll see how the rest of 2020 shakes out and whether investor sentiment shifts.
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