- \n
- In the first half of 2020 there were more crypto- and blockchain-startup acquisitions than in all of 2019, a relatively prosperous year.<\/li>\n
- Investors began focusing less on early and seed stages. This positively affected the average deal size.<\/li>\n
- Venture activity gradually shifted from North America to Europe and Asia.<\/li>\n<\/ul>\n<\/div>\n
<\/p>\n
Despite the coronavirus pandemic<\/strong><\/h2>\n
COVID-19 has negatively affected many sectors of the traditional economy, reducing both consumer demand and investment activity. However, some companies possess distinctive characteristics that allow them not only to survive the current economic shocks but also to remain attractive in a post\u2011pandemic world.<\/p>\n
As shown in the image below, in past post-crisis periods companies such as Google, Facebook, Airbnb, Stripe and Uber emerged, later becoming giants with multi\u2011billion-dollar valuations.<\/p>\n
\n![\"Despite](\"https:\/\/forklog.com\/wp-content\/uploads\/1-Venture-Investing-COVID.png\")
Notable NASDAQ-listed companies founded amid or shortly after recessions. Data: Adams Street.<\/figcaption><\/figure>\n<\/div>\n The pandemic caused major disruptions across many companies in various sectors. On the other hand, the crisis highlighted the need to adopt innovations for more efficient operations and to adapt to new conditions. The use of advanced technologies became a matter of survival for many.<\/p>\n
According to analysts at Adams Street<\/a>, blockchain will remain one of the most promising technologies in the post-pandemic era.<\/p>\n
\n![\"Despite](\"https:\/\/forklog.com\/wp-content\/uploads\/2-Fig-2-Venture-Investing-COVID.png\")
Most promising technologies and segments of the global market in the post\u2011pandemic era. Data: Adams Street.<\/figcaption><\/figure>\n<\/div>\n Experts expect continued innovation and accelerated adoption of technologies \u201cnot in spite of the pandemic, but because of it.\u201d<\/p>\n
\n
\u201cWe believe that technologies will pull us out of this economic cycle, and in the next 12\u201336 months, great companies will be created. Using past recessions as a guide, we are confident that 2020\u20112021 could be very successful for many venture investors,\u201d \u2014 emphasized at Adams Street.<\/p>\n<\/blockquote>\n
PwC analysts estimate that blockchain alone could add an additional $1.76 trillion (1.4%) to global GDP by 2030.<\/p>\n
The greatest impact is expected in China, the United States, Japan, and developed European nations.<\/p>\n
\n![\"Despite](\"https:\/\/forklog.com\/wp-content\/uploads\/3-Economic-Impact-around-the-world.png\")
Economic impact of blockchain adoption in various countries. Data: PwC report \u201cTime to Trust: How Blockchain Transforms Business and the Economy.\u201d<\/figcaption><\/figure>\n<\/div>\n Rising regulatory clarity and CBDC developments could spur institutional interest in the industry.<\/p>\n
Evidence of growing institutional interest is seen in dynamics of the futures market<\/a> on the Chicago Mercantile Exchange, the rapid growth in inflows<\/a> into Grayscale Investments\u2019 crypto funds, and multi\u2011million\u2011dollar bets by MicroStrategy in Bitcoin using borrowed capital<\/a>.<\/p>\n
COVID-19 did not shrink the number or value of M&A deals in the crypto sector. PwC notes that total acquisitions in the busy first half of 2020 surpassed the figure for all of 2019.<\/p>\n
PwC H1 2020 Global Crypto M&A Fundraising Report Oct 2020 PDF<\/a> by ForkLog<\/a> on Scribd<\/p>\n