It is no secret that venture capitalists are keeping a close eye on the Bitcoin sphere. While 2015 has already seen a heavy influx of money into Bitcoin companies, the year is not over yet. Even companies such as Boost VC are being open about their picks and investments, as after all, without decent entrepreneurs, there is no reason to invest in any Bitcoin company!
Boost VC Number Crunching Since 2012
Do keep in mind the following numbers have been presented by Boost VC themselves and are a combination of three years of investments and business. Overall, these numbers are pretty promising all across the board, even though it might still be too early to tell if they are the correct choices.
Ever since 2012, the name Boost VC has become synonymous with investments in Bitcoin startup companies. While every individual in the world may have the next “hot” business idea, weighted decisions have to be made in terms of who to invest in. Anyone in the world can be an entrepreneur, but it takes time, skill, dedication and a fair bit of help to become a successful entrepreneur.
So far, Boost VC has invested in 115 Bitcoin companies, spread out over six different Tribes. A Boost VC Tribe can be seen as an accelerator round, where various companies can pitch and develop their ideas. Putting an idea on paper is just one small step towards building a Bitcoin startup.
All of these Boost VC companies have managed to secure US$86m in money, albeit this number does not include the companies represented during Tribe 6. The total valuation of all companies – once again, excluding Tribe 6 startups – is estimated at US$390 million, which is quite an impressive number to say the least.
What may be of particular interest to financial exports all over the world is the number of companies being successful after their Boost VC Tribe. To measure this success rate, Boost VC only lists the number of companies successfully raising over US$1m after this period. A total of 23 companies have surpassed this threshold, representing 20% of all companies Boost VC has invested in.
Picking the Right Type of Bitcoin Startups
Businesses like Boost VC will have to tread carefully when contemplating to make another investment in the Bitcoin and technology world. According to the numbers provided, a total of 11 companies have dissolved between 2012 and right now. While that number is not particularly worrying just yet, it just goes to show that not every investment yields success.
One of the more interesting numbers is how Boost VC is diversifying their portfolio of companies. Most of the money is still flowing to blockchain-oriented startups (nearly 50%) and there is a growing interest in the virtual reality space as well. Furthermore, it is great to see nearly one in three investment being international in nature.
Bitcoin and blockchain technology provide a great investment opportunity for companies such as Boost VC. With so much funds flowing to Bitcoin and blockchain startups over the past few years, it should only be a matter of time until they are integrated into more traditional products and services. This is an exciting time to live in, and we should all feel blessed to be part of this historic moment.
Images courtesy of Shutterstock, Boost VC