As investment in FinTech continues to rise, investors are becoming more selective in doling out money to startups, including those focused on bitcoin and blockchain.
“There’s an increasing realization that [FinTech] is a specialized sector,” said Jalak Jobanputra, founding partner of Future Perfect Ventures. “It’s the realization that a lot of this does take extra time and the regulatory landscape is uncertain, and you need to invest in companies and entrepreneurs that understand that and have expertise and patience.”
The hesitancy is with both pure play venture capitalists and corporate investors.
Last year, blockchain and bitcoin startups received record-high funding at $474m, and it was the first time those categories of companies secured mid-stage Series C rounds.
Matthew Wong, research and data analysis at CB Insights, the consulting firm that co-sponsored the report, says big deals in blockchain will continue in 2016, although the space is maturing.
Instead of funding in mining and wallet startups, investors will look to broader applications