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China Blockchain Investment and Financing

2018-05-22

(I) The number and amount of companies that have won investment in China's blockchain projects have risen year after year
 
The number of blockchain projects established in China has increased year by year since 2013. In 2017, the number of policies and regulations was reduced, but the amount of investment and the average financing amount increased for several consecutive years. According to the statistics of the 36krypton Institute and the Whale Quasi Database, In 2017, China's blockchain-related project financing amounted to more than 1.27 billion yuan, and 54 financing incidents. In the first month of 2018, the blockchain industry’s financing amount reached 680 million yuan, and 19 financing incidents, financing amount and The number of companies that have won investment even exceeds the entire year of 2016.

(II) China's blockchain projects get together in first-tier cities
 
In terms of geographical distribution, blockchain projects in China are mainly distributed in first-tier cities such as Kitakami.
 

 
(III) China's blockchain project financing round mainly in the early stage
 
From the perspective of financing rounds, the vast majority of the companies that have been awarded are angel rounds and phase A rounds. Unicorn seats are vacant. The blockchain industry is still in an early stage of development. However, the proportion of strategic investment placements of large companies is also high. Go higher year by year.


(IV) China's blockchain project types and typical financing events since 2017
 
According to the type of blockchain project, it mainly includes the underlying technology and infrastructure platforms, digital asset management, media socialization, digital wallets and so on. Among them, the underlying technology and infrastructure platforms, digital asset management, and digital currency trading platforms are the three areas most sought after by the capital market.


·Underlying technology and infrastructure
 
Funding for the underlying technology and infrastructure projects is the most, ranging from a few million dollars to as much as 100 million yuan, and the rounds are dominated by angels. The main direction of these projects is to reduce the barriers for users to use blockchain technology by developing blockchain underlying technologies.


Case - The highest amount: The blockchain company Bobby 
 
completed the A round of financing in November 2017 with a financing amount of up to 100 million yuan. In the current stage of the blockchain sector as a whole, such a high level of financing is reflected in the overall situation. Bobby is optimistic about the capital market in the underlying technology of the blockchain. Currently, Bobby has already possessed dozens of core patented technologies and independently developed a highly scalable and high-performance blockchain basic service platform. Efficient transaction processing performance and excellent data storage efficiency.


·Digital Currency Trading Platform
 
In the entire blockchain industry chain, the digital currency trading platform (exchange) is an important part of the link between the project and investors. The business model of the current trading platform project has matured and is also a field of capital enthusiasm. 


Cases - The most concern: Gongxinbao has been concerned about the blockchain industry because it has acquired tens of millions of investment in the angel round from the real fund and angel investor Li Xiaolai. Gongxinbao started its own research and development chain from 2016 on January 12, 2017. Based on the main chain, Gongxinbao, it has created a CBD ecology. C represents Block City (a blockchain technology based on credit and data. A social system) now has 1.1 million real-name authenticated users, each with a digital identity. B stands for peer-to-peer data exchanges. Currently, there are more than 200,000 data transactions per day. This is the first public-chain project in the world for the commercialization of blockchains. D represents developers, developers can write smart contracts here, and get a universal digital identity, in addition, Block City will also give developers millions of data traffic, currently there are ten applications in the synchronous development of these Applications cover financial, social, gaming, clothing, housing, and other fields.


·Digital Asset Management
 
Due to the high volatility, free trading, and high risk of digital currency, investment institutions rarely deal with this field. However, with the arrival of the digital trend of assets, some project parties and capital have gradually entered, and digital asset management is becoming New investment track in the blockchain field.
 

Project Example - The Most Potential: The Tower Chain is a comprehensive service provider for the digital management of organizational assets. It is mainly based on blockchain technology, providing enterprises, social organizations and other groups with distributed credit data, funds and assets hosting plans, and constructing an equal, safe, controllable and autonomous network of registration, transaction and payment tools. The use of funds, assets and equity in the use of efficiency, enhance team cohesion and achieve the Internet value of communist democracy. The core business of Tower Chain Technology focuses on the underlying technologies of fully independent R&D of blockchains and distributed ledgers, providing digital asset registration and clearing services, and ensuring the security and reliability of business data.

 
Digital wallet:
 
Recently, the digitalized currency exchanges have been repeatedly attacked, and the security of digital wallets will become more and more important. Earlier this year, Cheetah Mobile released the "2018 Global Secured Digital Currency Wallet Security White Paper," which explains in detail the current security vulnerabilities in digital currency wallets, proposes security recommendations for digital currency wallet users, and exclusively publishes digital currency wallet security standard solutions. In the future, it is expected that the decentralized multi-functional cross-link digital wallet will become the mainstream application and development trend of blockchain in the financial services field.
 
Project Example - Safest: Earlier this year, Cheetah Mobile launched SafeWallet, a mobile secure digital asset wallet overseas, that can send and receive digital assets, manage multiple wallets, support multiple currencies (BTC & ETH), multiple wallet import methods, and real-time Currency prices, optimal transaction cost algorithms, Bitcoin knowledge learning and testing. SafeWallet is equipped with a powerful three-layer security defense system, and conducts all-round security control in three key areas: user behavior security, mobile security defense, and asset security management, to maximize the protection of digital assets and prevent the loss or theft of assets.

 
·Social media
 
Blockchain media and communities are the most active areas of the blockchain industry chain after 2018. Since the beginning of the year, hundreds of self-media have been born. In addition, there are a number of media companies to obtain financing, including: Mars Finance, Gyro Finance, Tiger Finance, Chain Decker, Bullock, China-Europe Blockchain Watch, Babbitt and so on.