According to a LeadBlock Partners study, the European blockchain startup market is catching up to its North American equivalent, with startups surveyed looking to raise €350 million in the next 18 months. This investment opportunity will attract more capital and accelerate the growth of the European Enterprise Blockchain ecosystem.
“We have entered into the era of the Data Economy. Similar to how the Internet reinvented the way we transact goods and services through e- commerce, Blockchain technologies will revitalize how we produce, own and consume data. Blockchain is a catalyst to digital transformation, and now solves concrete industry challenges. It eases technologies’ convergence (Big Data, AI/ML, IoT, Robotics etc.) and unlocks their full potential. It addresses current needs for economic sovereignty, transparency and sustainability. Blockchain’s decentralized and immutable nature has unprecedented potential to re-imagine today’s world. This technology is a powerful tool to reshape how businesses are run, making them more equitable, and transparent”, state Jean-Marc Puel, David Chreng-Messembourg, and Baptiste Cota from LeadBlock Partners’ Management team.
The Enterprise Blockchain ecosystem in Europe is growing
“We are today at a tipping point for Enterprise Blockchain start-ups, fuelled by increased corporation digitalisation needs, a maturing ecosystem and a growing investment opportunity. The US has historically led the way for Blockchain start-ups funding (4x more capital raised than in Europe), powered by specialised funds with 20x more AUM (Assets Under Management) relative to Europe. Europe is now catching up with growing start-up funding needs, client traction and corporations interest”, states the study which can be read in full here.
The ecosystem is growing in size – with 500+ new start-ups created each year, and with existing B2B start-ups turning to blockchain to add value to their product offering, in quality – with more talented professionals with relevant industry and/or entrepreneurship experience (70% of founders surveyed have 20+ years of experience, with 60% from Fortune Global 500 companies), in revenues – with an increased number of start-ups generating annual recurring revenues (20% of start-ups generate over €250k/year) and in funding needs – with the surveyed start-ups looking to raise €350 million in the next 18 months.
Growing opportunity in Europe to attract capital
LeadBlock Partners’ survey confirmed that blockchain is a highly strategic technology that should be seized across Europe. Initially built to facilitate transactions, Blockchain has spread across sectors, with Financial Services, Healthcare, Energy and Food/ Agriculture leading the way. “The US has led the way for Blockchain developments as it accounted for half of global funding toward Blockchain start-ups. However, Europe is now catching up, similarly to the broader VC ecosystem. Among the initiatives to address this funding gap, the European Investment Fund (EIF) has recently committed €100 million to support Blockchain & AI. There’s a growing number of funds, incubators and venture studios seeking to participate in this rapidly growing sector”, reads the study.
Startups are led by experienced founders
“Given the early stage nature of the European ecosystem, many start-ups have raised capital from friends, family & angels. They now need institutional investors to fill larger rounds as they grow and gain commercial traction. The European survey respondents have a funding need of €350 million for the next 18 months and 60% of them already generate revenues. This investment opportunity will attract more capital and accelerate the growth of the European Enterprise Blockchain ecosystem.”
Another aspect worth mentioning from the survey is that 80% of founders bring to the table significant industry and/or entrepreneurship experience, and often left senior corpo- rate executive roles to solve challenges they identified using blockchain. They had 21 years of professional experience on average for an Enterprise Blockchain founder, and 45 years cumulated with their co-founders. When founders were asked why they use blockchain technology as part of their tech stack, cost reduction was the first objective founders sought for by using blockchain technology. The top features used to pursue their objective is the immutability of data and the auditability of the database.
Modex strongly believes in a blockchain-based future
Launched in 2017, Modex made deployment of audited and secure smart contracts significantly easier, faster and more cost-effective, speeding up blockchain adoption. Thanks to the software solutions it brings to the industry, Modex aims to make blockchain ‘invisible’ and as easy-to-use as the Internet, for companies and developers alike. Since day one, Modex’s mission has been to facilitate the adoption of blockchain into society and to solve real-world problems using this revolutionary technology.
The company’s innovative Blockchain Database (BCDB) solution can be a game-changer in the healthcare industry, streamlining processes and optimizing revenue. Modex BCDB is a middleware that fuses a blockchain with a database to create a structure which is easy to use and understand by developers with no prior knowledge in blockchain development. As a result, any developer who knows to work with a database system can operate with our solution, without needing to change their programming style or learn blockchain. For enterprises, Modex BCDB translates into enhanced data security, secure data sharing, streamlining of operations and maximum protection against cyber-attacks.