Chinese Blockchain Startups Received Half the Funding in 2019 as Compared to 2018

The recent 2019 blockchain investment and financing report released by data-driven investment platform Rhino Data in conjunction with Xinhua Finance shows that Chinese blockchain startups received half as much investment money in 2019 as they did in 2018, bringing in a total of $3.5 billion through 245 investment and financing deals. Both numbers are roughly 50% lower than in 2018, though significantly higher than in 2017.

An overall summary of the report shows early-stage investments (pre-seed, seed, and series-A) dwindled as the year went by, and amounted to 43% of total investments. In the second half of 2019, strategic investment and acquisition became more prominent. Of note, investments began to increase towards the end of the year following President Xi’s endorsement of all things blockchain.

Popular investment areas included blockchain news/market intelligence, cryptocurrency exchanges, and DeFi projects. Traditional VCs took a back seat in 2019. Most investments came from newly formed crypto funds. Beijing, Shanghai, Shenzhen, and Hangzhou tended to attract more blockchain startups, though second-tier cities were catching up.