The bullish investors are not shying away from investing in crypto startups and blockchain startups in India. In fact, they seem quite confident about the success of startups in the crypto and blockchain space. This is quite evident from the investment data that paints a rosy picture of blockchain and crypto startups in India.
A majority of such investments are coming from Blue chip venture capital funds which are known for making risky bets on startups and reap the most when some of those startups achieve humongous success.
Investments in Crypto Startups In India: Big Picture
- In the last five years investment in Indian crypto and blockchain startups increased a whopping 1482%.
- Crypto and blockchain startups in India attracted a total investment of just $6.3 million in 2016.
- In 2020, total investment in crypto and blockchain startups in India totalled $95.4 million
- India crypto and blockchain startups have already attracted $99.7 million investment by June 15 2021.
- The investment in blockchain and crypto startups in India is still minuscule as compared to the US. So far, in 2021, US based blockchain and crypto startups have already attracted nearly 59 folds more investment than India.
- $2.19 billion was invested in the US based blockchain and crypto startups during 2020.
- This year, the investment amount in US based blockchain and crypto startups have already crossed $5.88 billion in the first 6 months of 2021.
- Despite the promising investment trends, many local investors are still maintaining distance from crypto startups amid the uncertainty about the legality of cryptocurrency in India.
- All the leading banks and financial institutions in India are still making highly cautious moves related to crypto transactions.
- The highly volatile crypto market conditions are failing to win the trust of regulators in emerging markets. Over $1 trillion, in terms of market cap, wiped off from the global cryptocurrency market in just 1 month.
- The crash of Blockchain, cutting its value to half within just a month, is raising more questions about the future of a stable cryptocurrency market.
Food For Thought
Undoubtedly, the increasing investment in crypto and blockchain startups are creating favourable conditions for Indian entrepreneurs, likes Nischal Shetty, Co-founder of WazirX, and Avinash Shekhar, CEO – ZebPay, who have been betting on the future of cryptocurrency in India big time. However, the ultra precautious nature of Indian investors and confusion over the legal status of cryptocurrencies in India is holding back the growth. In such a scenario, the future of many startups hangs in balance, putting millions of dollars invested at risk.
Those looking for the answer to whether to invest in cryptocurrency startups now or not must pay attention to what Andrew Bailey, the Governor of Bank of England, has said.