An even more stark illustration of the rapid growth of bitcoin investment levels are the 2012 numbers. An estimated $2.1 million was spent on seed-round funding in bitcoin projects that year. That’s an increase of 5,200% in VC funding in a very short time.
According to the CoinDesk report, much of this year’s growth is attributable to tech startup accelerator programs, such as 500 Startups.
The 500 Startups investments were much smaller and earlier stage bets, at about $100,000 each, compared to the seven-figure rounds the other investors participated in. … Venture funds were most attracted to exchange businesses in terms of the number of investments made. Exchanges attracted seven investments worth about $21m in total. Financial services and payment processors were the next most popular investment categories, by number of investments made.
Payment processors raised the largest amount of money in the first half of this year, with Circle, BitPay and Xapo accounting for $67 million in VC funding. Bitcoin mining hardware maker BitFury also secured $20 million, while Chinese cryptocurrency exchange OKCoin brought in another $10 million.