China’s Blockchain Firms Obtained An Accumulated Financing of 6.3 Billion Yuan In the First Four Months of 2018
China aspires to be a front-runner in the blockchain industry despite the government’s strict stance on crypto-related activities. According to the Blockchain Investment and Financing Report 2018 released by China Venture, there are more than 320 blockchain-focused companies operating in China, with an accumulated financing of 8.9 billion yuan ($1.34 billion USD) as of the end of April this year.
Data shows that China has seen explosive investment growth in its blockchain industry, and the number of domestic blockchain firms has been rising for six consecutive years. By the end of 2017, there are 169 Chinese blockchain companies have obtained financing, 70 percent of which are located in Beijing, Shanghai and Guangdong province.
But Hangzhou, the capital city of Zhejiang province, is home to an increasing number of blockchain companies now, closing the gap with the first-tier cities. Hangzhou has set up a 10 billion yuan blockchain fund which is backed by local government in April.
In recent years, the amount of money flowing into blockchain industry has been increasing and the size of a single investment in this sector has gradually expanded.In 2013, blockchain-related enterprises received RMB 174 million worth of investment in China. But the figure hit 1.358 billion yuan in 2017, with an average annual growth rate of 50.81%.
Since the beginning of 2018, the investment in blockchain industry is growing explosively as the technology’s use cases and business models become clear. According to China Venture’s incomplete statistics, Chinese blockchain startups have raised more than 6.306 billion yuan from 106 financings in first four months of 2018, far more than in previous years both in terms of size and frequency of financing. Ping An Insurance’s OneConnect Financial Technology Co., LTD raised $650 million in a Series A funding from IDG Capital and SBI Group in February which is the single largest financing in the field of fintech so far in China.
Besides, it is worth noting that 10.38 percent of blockchain start ups have obtained more than 100 million yuan worth of financing .
Amid the current blockchain craze, a top Chinese financial regulator warned against “mythologising” the technology behind cryptocurrency last week. Fan Wenzhong, who leads the international department of the China Banking and Insurance Regulatory Commission(CBRC) said that “ decentralization is not a new trend but a loop, because the earliest human transactions were without central authorities.”