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CV VC Top 50 Report released

The fifth edition of the CV VC Top 50 Report has been released on the 16th of September. Ralf Kubli, Director CV VC, is the author of the report and discussed the key findings with CV Post

Key findings of the Report:

  • The latest CV VC Top 50 Report shows that growth has been achieved in all the areas examined. As of June 30, 2020, the effects of COVID-19 are not yet visible.
  • The number of blockchain specialized companies in Switzerland and Liechtenstein increased from 842 to 919 (8.4% growth) in H1 2020.
  • The companies employ over 4,780 people in Crypto Valley compared to 4,400 (8.6% growth) six months earlier.
  • The market capitalization of the 50 largest companies increased by $10 billion to $35.5 billion (39% growth).
  • Crypto Valley counts six Unicorns (companies with a valuation of over 1 billion dollars): Ethereum ($25.3 billion), Cardano ($2.2 billion), Dfinity ($2 billion), Tezos ($1.8 billion), Polkadot ($1.2 billion) and Libra ($1 billion).

Crypto Valley has grown during the covid-19 crisis and the lockdown. The number of companies and jobs has increased, as has the market capitalization. Did that surprise you?

The impact of the crisis was difficult to assess in the beginning. It was clear that funding for startups would get more difficult, other impacts were more difficult to assess. I believe that the Crypto Valley Ecosystem has proven that it reached critical mass, where the positive effects now enable growth in the most difficult times. Market capitalization has increased due to specific large funding rounds of more mature companies, and the excitement around protocol development and DeFi.

Why has Crypto Valley maintained its position so well?

There is a mix of reasons for the overall strength continued growth of Crypto Valley. First, the regulator framework is clear, and this clarity continues to attract many companies and founders. Second, the variety of communities present in Switzerland and Liechtenstein have energized each other. Developers, companies, universities, investors, legal and accounting service providers are by now so numerous, that positive effects are re-enforcing each other. Third, the financial sector has again attracted significant Venture Capital.

In what areas has Crypto Valley developed?

We can see that more and more institutional players are building infrastructure for new business models in their respective sector. Supply chain in industrial environments, storage solutions for digital assets and financial services, are some of the most happening areas.

What development did you not expect?

The solid financing rounds which resembled Series B and C rounds of multiple players were surprising during the crisis. Given all the delays and difficulties in closing on investors, it is a very positive signal that significant financing rounds took place despite the crisis.

Crypto Valley Top 50 companies per sector

There are six unicorns in the Crypto Valley, most of them are protocol layer. Do they exert a great attraction on startups and developers? And How?

Protocols like Tezos and Cardano have delivered on important milestones and this is what receives the attention of the technical community. Ethereum continues to have the largest community of developers. With financial applications, also referred to DeFi, Decentralized Finance, on the Ethereum Network, many new and exciting solutions have been developed. At times, this reminds us of the irrational exuberance during the ICO wave in 2018.

How important is the financial center with its banks and Fintech companies for Crypto Valley.

There are very few, if any places in the world where financial institutional players and startups in the blockchain and crypto industry can have discussions without fearing prosecution from regulators. In addition, the law of numbers plays in favor of innovation. Among the large numbers of players in Switzerland and Liechtenstein, just a few willing to experiment will enable innovation with global impact.

How does Crypto Valley differ from other blockchain ecosystems?

All the critical players are present in numbers well above the critical mass required to foment the successful creation of world class leading innovation and subsequent adoption: Developers, researchers, corporates, regulators, communities driving innovation in specific verticals. The biggest difficulty remains finding venture capital for rounds above CHF5M.

What are the trends in Crypto Valley for the next twelve months?

We can expect big things to happen in at least two core areas. First, protocols will keep on delivering exciting new technology, resulting in more adoption. Second, many financial service players are getting ready for the new DLT Act entering into force in Switzerland early in 2021. We will see completely new possibilities in how financial assets and instruments are traded, stored and transferred between owners. And this will only be possible in Switzerland!



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