By Kishore Ganji

Introduction

Blockchain and cryptocurrencies have been garnering a lot of interest worldwide with thousands of new companies developing within the industry at a rapid pace. Similar to other spheres and products, entrepreneurs must start by identifying an issue or a problem that demands solutions and develop a game plan accordingly to solve it. Having put together a team of developers to construct a platform, the next big thing is to acquire funding for sustenance and of course to proceed forward.  

Funding in Blockchain Start-ups

When it comes to funding, it must be noted that funding for blockchain start-ups is a somewhat challenging task. However, over time, funding for blockchain start-ups has become commonplace with venture capitalists (VCs) investing their money in such organisations. 

Funding in global and Indian blockchain start-ups by VCs struck a record in 2021 despite uncertainties on legal and policy fonts. Despite certain upheavals within the industry, VCs remain bullish in terms of the expansion of blockchain start-ups. JP Morgan, one of the world’s leading financial institutions, recently unveiled its plans to launch a cryptocurrency wallet for digital currency transfer and exchange. 

Whether it is fear of missing out or sensing great potential in the world of crypto, VCs are targeting this domain big time. So, if you are an entrepreneur in the domain of crypto, there are certain reasons why you should consider getting funds for your blockchain start-up. Let’s look at the reasons carefully:

Strong Customer Growth

According to the 2022 Geography of Cryptocurrency report, India was ranked fourth in crypto adoption, recording $172 billion in cryptocurrency transactions between July 2021 and June 2022, as it continues to lead the South Asia and Oceania regions. Individuals betting on virtual assets like Bitcoin and Ether and angel and institutional investors are opening the funding tap for Indian crypto and blockchain start-ups to focus on a particular strategy – high risk and high reward. 

The Supreme Court’s March 2020 ruling that set aside an RBI circular that ended up banning crypto facilitation of crypto trade by banks, was a turning point for crypto start-ups. Companies that inducted more crypto enthusiasts garnered more interests from VCs. This kind of strong customer growth combined with VC interests are expected to dominate the industry even in 2023. So, if you are an entrepreneur you must look towards funding for your blockchain start-ups in 2023.

Growth despite Overhanging Regulatory Measures

Investing in the crypto space demands regulatory clarity which happens to be a multi-layered process. It can take a very long-term view with regard to building infrastructure and tooling while at the same time being compliant. Experts in the legal field involved in due diligence before such deals happen, confirmed that owing to the vast technical talent present in India, the growth of crypto start-ups is bound to happen in the near future. This is one of the many reasons as to why one should opt for getting funding for their blockchain start-ups in 2023.

Funding to Continue Happening in The Near Future

With an increased volatility in the crypto market last year, the future of supposed cryptocurrencies does feel shaky. But, analysts and investors are optimistic that the crypto market will rally and see some revival in 2023. Some say that with several recognised names investing in crypto in India, the overall act on funding crypto/blockchain start-ups is expected to witness a boom. Globally too, the sector has witnessed substantial funding and India has been no exception.

The crypto segment has disrupted the financial sector to a considerable extent and going forward it is expected to continue to do so. And 2023 is expected to be yet another great year for the domain.

The author is founder, Astir Ventures

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