The hype surrounding blockchain continues unabated. Investments in startups working with the technology increased by two-thirds last year compared to 2016.
Blockchain companies secured $512 million in venture capital in 2017. A total of $31 billion flowed into fintechs, and $7.4 billion went to insurtech companies.
While the hype topic of ICO, i.e. capitalization via blockchain tokens, must be viewed critically, blockchain as a technology offers a wide range of applications that make it interesting for investors, says KPMG partner Sven Korschinowski. Regarding the further results of the “Pulse of Fintech” analysis, he says:
"Investments in insurtechs, in turn, are driven both by traditional insurers grappling with increasing digitalization and by the growing interest of venture capitalists seeking to gain a foothold in this exciting vertical. In Germany, many insurers have recognized the need for digital transformation and initiated corresponding investments."
Blockchain remains a trend topic in 2018
In Germany, the FinTech financing and deal market experienced a significant revival: In 2016, 57 financing rounds generated $455.1 million. In 2017, the study recorded 67 investments with a total volume of $1.21 billion—an increase of 166 percent.
This year, the analysis expects increased investment in machine learning, artificial intelligence, and the Internet of Things. Korschinowski says:
"Both strategic investors and fintechs are increasingly looking for ways to apply the rapid developments in machine learning, AI, and IoT to the financial sector—whether through the digitalization of processes or new products. Blockchain applications are expected to reach the next level of maturity in 2018.
Numerous concrete use cases are being tested in many countries, and there is also a lot of movement in the area of corresponding consortia.
