KPMG’s bi-annual fintech report notes an increase in investing. The US leads in blockchain related spending.
KPMG, one the big four auditing firms, released its “The Pulse of Fintech” study, covering the first half of 2018. There is a significant increase in blockchain related spending and while interest is spread across the world, the United States is a definitive leader. Another key finding is that large-scale investors prefer backing well-established projects, rather than new teams. As the report reads:
“Investor interest in blockchain was not limited to one jurisdiction. Good sized funding rounds were seen during the first half of the year, including $100 million+ rounds to R3 and Circle Internet Finance in the US and $77 million to Ledger in France. The US was particularly active on the blockchain front, with total investment in the first half of the year already exceeding the total seen in 2017.”
The Cayman Islands also get mentioned, as Block.one (the company behind EOS) raised $4 Billion via ICO. Although one can dispute the number, as it was raised for a longer period of time (i.e., starting before the beginning of 2018), this is still a significant project.
It’s worth pointing out KPMG has a generally positive attitude towards the sector. The company joined the Wall Street Blockchain Alliance (WSBA), a non-profit organization aimed at promoting distributed ledger technology across the financial sector. That being said, this shouldn’t have an impact on the study, as it has a much broader scope.
The key conclusions of the report are in line with the findings made by Autonomus NEXT – there is a definite uptick in spending, but the bigger projects get a majority of the funds, while startups are still likely to face a challenge.
When it comes to the future outlook, it’s important to note total fintech spending (including non-blockchain based) is on the rise. If this trend continues, distributed ledger ideas should also attract more funds in the future.