A majority of fundraising in the crypto sector has now shifted from the Americas to Europe, the Middle East, and Africa (EMEA). Also, the Asia Pacific regions (APAC) are getting an uptick in the fundraising activities according to a recent report that was documented by Big Four auditing firm PriceWater Coopers (PwC).
According to the auditing firm’s 2nd Global Crypto M&A and Fundraising Report, during 2019, the fundraising efforts in the crypto sector got 18% less funding. On the other hand, the funds in mergers and acquisitions (M&As) in the space reduced by up to 40%.
As the funding decreased in general, EMEA and APAC’s share of the pie got significantly larger. While EMEA and APAC saw 44% of cumulative fundraising and M&A deal value in 2018, that percentage grew to about 51% last year.
Throughout the same period, the Americas’ share of cumulative fundraising and M&A deal value plunged from 55% to 48%. Thus, the decrease in the number of funds recorded in the crypto space was more substantial in the Americas than in many other regions.
EMEA and APAC Regions to Further Grow in Importance
PwC expects the shift from the Americas to the other regions mentioned above to continue throughout 2020, stating:
“2019 saw APAC and EMEA play a bigger role in the global crypto M&A and fundraising space. We expect to see this trend continue in 2020. In particular, we expect to see more activity from APAC and EMEA based family offices looking at the market turbulence as a good time to enter the market.”
In general, PwC says that the crypto sector continued to mature in 2019 as the funds started trickling to the later-stage companies. In 2018, up to 715 of the funds were raised by seed-stage firms, while in 2019, the seed-stage companies got 59% of the total funds.
Funding For Crypto Startups Dwindle
According to the PwC data, not only did this funding for crypto firms reduce, but funds meant for early-stage startups shrunk too. Reports from the end of 2019 showed that after financing in the space surged to $5.5 billion in 2019, less than $3 billion flowed into the crypto ecosystem in 2019.
Jack Dorsey, Twitter co-founder, and CEO, who is also the founder of crypto-friendly payments firm Square, recently confirmed that a grants program for open-source Bitcoin development in an attempt to help enhance the ecosystem.