Blockchain investments accounted for half of all fintech funding in 2015

There are some interesting things happening in the fintech investment space. While total VC funding in fintech has declined, investment in blockchain companies continues to increase. New areas of fintech are often the birthplace of innovation. Insurtech and blockchain are now among the hottest investment areas.

Fintech investing is changing

Venture capitalists usually want to explore new and hot trends in all industries. For the financial technology and service industries, insurance technology and blockchain are the hottest trends. Or you can see this phenomenon when you look at the overall funding flow in the financial technology field. Most people still remember that Circle received $60 million in financing earlier this year, which further promoted the investment amount in the blockchain industry.

Over the past few quarters, the amount of money invested in blockchain companies has grown exponentially. 2014 was great, but 2015 was even better. The first half of 2016 has almost matched the amount invested in all of 2015. Meanwhile, the number of blockchain-related rounds is declining, but 2016 will still surpass last year’s numbers.

More specifically, if you look at the number of investments in 2015, you will find that blockchain investment is the hottest in the financial technology field. Half of the investment in financial technology in 2015 went to distributed ledger companies, and two-thirds of the companies that successfully raised funds were developing blockchain solutions.

As blockchain companies get more venture capital, they need more users. Some of the most successful companies already have active use cases. However, most companies exploring blockchain technology are committed to creating use cases, although most are still just a concept.

Without the right applications, blockchain technology is useless to the average person. And, many of these projects will come to fruition in the coming months. Currently, many venture capitalists are still pouring money into the space. But unless results show up soon, that may change.