From a merger perspective (M & A), mergers between companies that are only in the crypto sector account for 56% of the transaction capital flows, compared to 42% in 2018. Total M & A transactions questioned by the report that dropped from 189 in 2018 to 114 last year, while the value of M & A transactions dropped a whopping $ 1.9 billion to $ 451 million, or $ 451 million. equivalent to a 76% reduction.
PwC's head of global cryptocurrency analysis Henri Arslanian said in an interview:
I think we should expect a company to become bigger, but not by acquiring direct competitors. Not bigger vertically but need to grow horizontally. Unicorns need to become octopus, which means companies must be able to tap into more areas of the cryptocurrency ecosystem.
Meanwhile, the decrease in the amount of development projects is quite difficult to determine.
Overall fundraising fell 40%, to only US $2.24 billion and the number of transactions decreased by 122. Fundraising through equity fell less, only 18%. The strong growth in value of Bitcoin in the second and third quarter of 2019 did not prevent the decline in the amount of funding. At the same time, the report also predicts that because of the gloomy economic prospects of the global economy, it is likely that these figures will continue to decline in 2020.
The type of company that receives investment capital also varies from year to year. In 2018, most of the funding from venture capital funds went towards blockchain infrastructure projects while government-licensed companies to operate and manage cryptocurrencies were companies. Get the most investment money in 2019.
The trading capital flows are also moving out of the Americas and towards Asia and Europe, with the amount of capital trading between businesses increasing by 6% and 8% respectively. Last year was the first year most crypto fundraising and M & A transactions occurred outside the United States.
Companies looking for new investment institutions are also flocking to Hong Kong while companies targeting the retail audience are attracted by Singapore's progressive business environment, Mr. Arslanian added.