The Security Token Ecosystem Study Summarized #3

BlockState
Nov 6 · 3 min read

Day 3 of our series of blog posts and we are going to look into our 3rd category that we covered in our Global Digital Securities Ecosystem Study — Investors.

Investors origin

First off: We counted every company as an investor if they invested into one of the security token related companies that we covered in our study. Many investors came to light in this procedure and it wasn’t just the expected Blockchain VCs that were found. Actually quite the opposite: Traditional VCs lead the section as they make up 64% of all investors. They are followed by the Blockchain VCs at 28%, digital asset managers at 6% and a few smaller categories at 1%.

Geographical perspective

The USA are the most dominant in the investors category. 42 of the 69 companies we identified come from the US and no other country can follow up with this number as we see Germany sit on the 2nd place with just 6 investors.

Apart from that Asia leads many investors into the race, as Germany is closely followed by China and South Korea on 3rd and 4th place.

Activity

While the category itself is fairly big a small detail tells a lot about the maturity of this part of the ecosystem:

  • 64 out of 69 investors invested in only one security token related company
  • 3 investors invested in 2 different projects
  • 2 leaders (Coinbase Ventures & Blockchain Capital) put their money into 3 different companies

So while investors represent a fairly large part of the ecosystem most of them are one-timers. While this can of course change as the ecosystem advances further it will be interesting to see whether we see a further wide spread base of investors or if a few companies will take the lead and invest in multiple projects.

Conclusion

Investors of all sizes are interested in Security Tokens. The world-wide attention digital securities are getting indicate the vastness the ecosystem can reach as it gains more and more traction.

This study could be extended further as we weren’t able to gain as much insight into the amount of funds invested as well as investment targets. Especially over the years it will be interesting to observe how much monetary investments in the ecosystem help companies thrive and if the success justifies the amounts flowing in.

If this rundown made you curious fell free to check out the full study to get an even more detailed insight into all the categories.


BlockState is a Swiss security token platform for non-bankable assets such as SME equity and debt or real estate. We digitise assets to directly connect issuers and investors.

BlockState

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