Report: SBI Holdings, Alphabet, Overstock Are Leading Blockchain Backers

Blockchain, Investing, News, Uncategorized | October 19, 2017 By:

A report from research firm CB Insights indicates that Japan’s SBI Holdings, Google parent Alphabet, and the investment arm of Overstock.com are among the most active corporate investors in blockchain companies.

The report indicates that 91 blockchain companies received funds this year from corporate investors, a record amount in the nascent space. In contrast, 95 venture capital firms have backed blockchain companies, making them the leading firms. Of course, initial coin offerings (ICOs) have far outweighed both as an investment vehicle, raising more than $2 billion this year to date without surrendering equity.

CB Insights claims that, to date this year, there have been 42 equity investment deals by corporations totaling $327 million in US funds. The amount is approaching the 2016 entire year total of $390 million.

Japanese financial services firm SBI Holdings is the leading corporate investor, having stakes in eight blockchain firms, led by its backing of the R3 banking consortium and the Kraken cryptocurrency exchange. Google parent Alphabet is right behind them, owning pieces of the bitcoin wallet company Blockchain and Ripple, which has the third-largest volume for its XRP digital coin and is working with the banking industry on money transfer software.

In the show position is Overstock.com, with US banks Citi and Goldman Sachs in fourth and fifth place respectively.

“Big banks and financial services firms were the first corporate players to make direct blockchain investments en masse — unsurprising, given how Bitcoin’s underlying technology lends itself, both technically and in popular thought, to financial services,” CB Insights said in its report.