Fundamental analysis of top 4 startups backed by Venture Capital

How did some of the most successful tokenized blockchain projects do as opposed to the incompetent projects that kick-started the get-rich-quick scheme throughout the blockchain industry.

Social O1ex
Nov 6 · 4 min read
A globe image of aninterconnected world
A globe image of aninterconnected world

As the modern capital diversifies, it is expanding beyond traditional verticals and hubs. What spawned through the bitcoin, spans throughout the corporate industries wherein even banks want to cash in the opportune moment.

VC investment in US-based fintech companies remained constant and strong. With quarterly VC investment reaching over $3 billion in Q2’18. Blockchain-based projects and companies collectively raised $327 million from ICOs in the first half of 2017. By comparison, VC funding accounted for only $295 million during the same period. In other words, this year, only four years after the first ICO, the indulgence of venture capitals has paved a new route to financial resources and the digital asset economy.

While the SEC and other regulatory bodies put a multitude of constraints on unregulated projects, VC plays an important role in funding such projects. A hedge fund or a crypto hedge fund is an alternative investment body that is open for individuals and institutions with significant assets. Capital funds being quite unregulated are able to invest in a wider range of securities than mutual funds can. The ability of a crypto fund to invest in almost anything makes it a formidable alliance for crypto startups both for getting initial seed investment as well as attracting a faithful community of followers, investors, and patrons. The total VC investment in the year 2013 was $250m which has increased significantly over the years and crossed $4bn in 2018. But the reports pertaining to the capital raised in H1 2019 paints a dull picture. An Outlier ventures’ report says that blockchain startups have raised $822 million in the first half of this year. It is somewhat attributed to the market slump that engulfed the last year and half of this year too.

Several projects including Basis has been shut down due to regulation causes but the VC investment in tokenized blockchain projects continues to increase. Given the fact that they are actually the drivers of the industry. Overall investment in the crypto economy is diversified across venture capital (VC), private equity (PE) and mergers, and acquisitions (M&A) of which ICOs, IEOs and asset economy is an opportunity where everybody is eying on.

Let us take a look at the top projects that aim to improve the blockchain architecture’s stability and by enabling faster real-time transactions around the world and facilitating the adoption of blockchain by high throughput mechanisms.

Here are the top 4 blockchain startups that were successful

4 successful blockchain projects that raised significant amounts
4 successful blockchain projects that raised significant amounts

EOS

In the biggest crowdsale in history, EOS managed to secure humongous funding of $4bn in a year-long crowdsale. The EOS blockchain is an open-source blockchain protocol with higher speeds that enable and allows for the development, hosting, and execution of all decentralized applications. It will serve as an all in one scalable platform to develop dapps, support core functionality and allow every developer and business to create any decentralized app similar to web-based applications.

Total raised- $4bn

Crowdsale- Raised in a year-long crowdsale

FANTOM

Fantom is the first DAG based Smart Contract platform that intends to solve the issues hindering the progress of the distributed systems and technologies such as scalability and confirmation time of the blockchain technology. Working under a new consensus mechanism, the ‘Lachesis Protocol’, FANTOM will enable quick real-time transactions and facilitate near-zero transaction fees.

Total Raised- $39.4 million

Crowdsale- Single phase 15 day ICO

Investors- Blockwater Capital, Hyperchain Capital, Signum Capital, Block VC, etc.

TON: Telegram Open Network

Originally started as an encrypted cloud-based instant messaging platform, Telegram couldn’t resist the revolutionary technology behind the blockchain. They embraced the decentralized technology that is capable of working independently of trust, legitimacy and faults. With over millions of users, Telegram intends to facilitate internal payments, host decentralized apps and provide wallet services in their new blockchain foray. TON intends to compete with payment giants such as Visa and Mastercard due to their highly scalable blockchain that will be better than Bitcoin and Ethereum

Total raised- $1.7bn

Crowdsale- Two private rounds

Quarkchain

Quarkchain is another decentralized blockchain architecture that aims to achieve millions of transactions per second by using horizontal scaling technology and sharding. Quarkchain has managed to achieve 14,000 TPS using a few AWS nodes and that makes it a valuable blockchain as it exceeds most other blockchains in terms of transaction speeds and capabilities. Quarkchain plans to use more nodes on the network which will increase its throughput by a greater degree aiming an astounding number of 1million TPS.

Total raised- $20 million

Crowdsale- One day

Investors- Block VC, Fenbushi Digital, Draper Dragon, #Hashed, TLDR, etc.

Social O1ex

Written by

O1ex

O1ex

At O1ex, we believe that a better way to grow technology is to empower beautiful minds with resources and be part of the change. O1ex intends to help facilitate the advancement and innovation in decentralised projects and foster growth. www.o1ex.com

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