The formation of the R3 consortium and the increasing interest of banks, financial institutions, and governments have continued spark the development of private or permissioned blockchain networks over the past two years.
Venture capital firms began to shift their focus on blockchain startups after recognizing the market for banks and financial establishments
Naturally, as money began to flow out of the bitcoin to the blockchain industry, bitcoin startups and entrepreneurs followed, either rebranding their companies or launching new products to serve top-tier organizations in the financial market.
According to the Outlier Ventures research team, there are around 1,000 registered blockchain startups, with the majority of the startups located in the U.S, U.K, and Germany.
Financially, basing a startup—especially a company that is still in its infancy with low funds, capital, and limited clientele—in abovementioned countries is not practical, primarily because of the high salaries and costs of employees and resources.
Despite the financial inefficiency of building a young startup in an expensive region, blockchain startups prefer to remain in large financial hubs to maintain their connections with financial institutions and banks.