Cryptocurrency is experiencing a second wind but investment isn’t following, yet

With Bitcoin at a record high price and the rise in prominence of Ethereum, there’s a strong argument to be made for Cryptocurrency currently experiencing a record level of interest, however, despite this, investment into Nordic cryptocurrency startups isn’t increasing, yet.

  • We’ve never seen more than 2 cryptocurrency investments in a quarter, with the 2 in Q3 2014 remaining the peak.
  • This period at the end of 2014 and beginning of 2015 was certainly the most active time in terms of investments.
  • Since Q1 2015, over two years ago we’ve seen just two investments, and both of these were follow-on investments, meaning we have to go back as far as Q4 2015 to see an initial investment into a Nordic cryptocurrency startup.
  • It’s been 9 months since any Nordic cryptocurrency investment.

So, why are we focusing on this if the action is so little?

  • Firstly, there’s a renewed interest in the sector, and the picture looks a lot different than a couple of years ago with the promise of Blockchain and protocols so we will likely see an increase of some kind both in the number of cryptocurrency startups in the Nordics and those raising capital.
  • On a global scale, cryptocurrency startups are seeing increased levels of investment once again.
  • It’s likely that the main reason why there has been so little investment in the Nordics is that there has been very few companies actually working in the space, however, due to the above reason, it’s likely that we will see more now.
  • One of the reasons for subdued interest may also be due to the fact that KnCMiner closed down despite raising a hefty $29 million, however as time passes and the opportunities present themselves once more this isn’t likely to put investors off for much longer.

We often produce sector analysis of new and upcoming verticals that are attracting investments, however, at that point spotting the trend can be too late. Now is a good time to be thinking about cryptocurrency and I would bet that there are new Nordic startups in this space talking to investors as you read this.

Neil S W Murray founded The Nordic Web in 2014 in order to provide the Nordics with the quality coverage it deserves. As well as being Founding Editor of The Nordic Web, Neil is also an active community builder in the region, participating in a number of initiatives, and has previously worked for Tech.eu.