Emerging Trends in the Blockchain Space
Infrastructure, security, and more developments are reshaping the capabilities of blockchain across industries
Blockchain has become one of the fastest-growing venture opportunities for investors. The technology offers transparency, data immutability, and decentralized ledgers with applications across many different industries. Startups and established companies alike are utilizing this revolutionary tech to introduce true digital ownership and scarcity in digital spaces.
A major draw for investors is the tech’s value to existing industries. A Deloitte survey found that 86% of senior tech executives say that blockchain offers a compelling business case for their company. Gartner projects that businesses will gain $360 billion in value by 2026 thanks to blockchain-based projects — rising to $3.1 trillion by 2030.
Alumni Ventures’ Blockchain Fund was created to invest in a diverse portfolio of high-potential and innovative companies utilizing this technology. Below you’ll find a selection of investments from AV’s existing portfolio in rapidly trending subsectors of blockchain to illustrate the types of high-potential companies we will source for our Blockchain Fund.1
Alumni Ventures’ Blockchain Fund will focus on new sectors and ventures using blockchain tech. We will provide investors in the fund with a portfolio of ~20-30 promising, venture-backed companies innovating in areas like decentralized finance (DeFi), the metaverse, non-fungible tokens (NFTs), and more. This is an actively managed fund led by a three-person investing team, all with deep VC and blockchain experience.
To learn more, click below to review fund materials or book a call with a Senior Partner.
Fintech
The global blockchain market, which is divided into blockchain platforms and Blockchain-as-a-Service (BaaS), is projected to reach $69 billion in 2027. The adoption of blockchain-derived products in the fintech sector has been a significant part of this growth.
Sample Fintech Investments From AV’s Portfolio
The following are past investments AV has made, but reflect the types of promising companies we aim to include in this year’s Blockchain Fund.
Adjoint develops programmable crypto-ledger technologies that allow enterprises to quickly deploy, maintain, and analyze a global network of contracts. The company’s app helps traditional programmers develop smart contracts without knowing how to program blockchain applications.
Circle uses blockchain technology to enable users and customers to globally invest in cryptocurrency assets. The company harnesses the power of cryptocurrency and public blockchains for commerce worldwide.
Consumer
Customer expectations for greater transparency, security, and verifiability of financial products have led to the incorporation of blockchain-derived products across many consumer industries. The technology allows businesses to deliver on these requirements in an efficient, cost-effective manner. Additionally, the advent of NFTs (non-fungible tokens) has led to the creation of entirely new marketplaces, which analysts valued at $17.6 billion in 2021 — up 200x from $82.5 million in 2020.
Sample Consumer Investments From AV’s Portfolio
The following are past investments AV has made, but reflect the types of promising companies we aim to include in this year’s Blockchain Fund.
GigLabs provides two tools — a CMS platform and a 3D environment to experience digital art and collectibles — to help brands build successful NFT experiences. Its cloud-based CMS platform enables brands to manage the creation, distribution, management, and tracking of NFTs. GigLabs also offers an immersive 3D environment for collectors, artists, and admirers to experience digital art and NFT collectibles.
Mythical’s tech stack creates a gaming platform for digital assets that benefits players, content creators, and developers. Using blockchain technology, Mythical’s innovative and proprietary architecture provides easy-to-use tools for content creators and brands to customize, own, and sell game assets, creating in-game economies.
AV first invested in Mythical’s $19 million Series A in 2019 and most recently invested in a $150 million Series C led by Andreessen Horowitz, bringing the company’s valuation to $1.25 billion.2
Pixelynx has developed technology designed to transform the way music is consumed in the metaverse while also building a network of complementary businesses. Pixelynx’s metaverse platform makes it easy for artists to launch their own interactive environments and monetize them through NFTs, playable experiences, and virtual performances.
Infrastructure
The development and ongoing maintenance of underlying blockchain infrastructure have only grown in importance since the technology has gained mainstream traction. From specialized hardware developed to verify cryptocurrency transactions to software protocols making transactions on blockchains more efficient, there are significant opportunities for innovators and entrepreneurs. This has led to multi-billion dollar valuations for companies aiming to build the foundation on which Web3 will be built.
Sample Infrastructure Investments From AV’s Portfolio
The following are past investments AV has made, but reflect the types of promising companies we aim to include in this year’s Blockchain Fund.
Stacks has developed a new internet for decentralized apps, giving users control over their identity, data, and security. Its open-source platform lets developers access tools to create consumer-facing apps and run them through the Stacks browser.
Subspace is building a global, distributed network to provide blockchains with archive storage and computational power. Subspace stores blockchains’ massive historical data on participants’ computers — compensating them with Subspace tokens. This allows blockchain clients to scale more quickly, cheaply, and securely.
Tari is an open-source and decentralized protocol enabling the management, use, and transfer of many kinds of digital assets. The digital assets it covers include tickets, loyalty points, and virtual goods, transforming the future of digital assets.
Transforming the Blockchain Space Through Venture
Alumni Ventures’ Blockchain Fund invests in startups developing the technologies aiming to redefine blockchain for the Web3 era. Leveraging our broad network of 600,000 supporters and robust due diligence process, our team of 60+ experienced investment professionals will source and vet a diversified portfolio of ~20-30 promising blockchain companies. The fund will mostly be invested over ~12-18 months, with a large reserve (~20-25%) for follow-ons.
To learn more about the fund, you can review the fund’s materials or contact our team.
Contact [email protected] for additional information. To see additional risk factors and investment considerations, visit av-funds.com/disclosures.
1For illustration purposes only. These investments are not intended to suggest any level of investment returns. Many returns in investments result in the loss of capital invested. Blockchain Fund 2 was managed by AV with investment team led by Ray Wu. Blockchain Fund 3 to be managed by AV with investment team led by Edward Tsai. Going forward, odd number funds will be managed by Edward Tsai, even by Ray Wu. When Fund Families have more that two investment teams, each team can work collaboratively with each other, but each is responsible for investing its own assets. Blockchain Fund 1 was managed by Green Nonce, which was subsequently spun out such that it and its principals are no longer affiliated with Alumni Ventures.
2Past performance may not be indicative of future results. Different types of investments involve varying degrees of risk, and this fund involves substantial risk of loss, including loss of all capital invested. To see the performance of each exited investment for all Alumni Ventures funds over the last twelve months and our historical performance since 2014, click here.