Digital currency is the fastest growing area of venture capitalist funding
Digital currency is reportedly the fastest-growing area of venture-capitalist funding, according to data from Mattermark, with VC-funding in digital currency related businesses having increased 151% from mid-2012 to mid-2015. Also, though the rate of investment in digital currency companies is the fastest-growing, it remains low in terms of total invested dollars.
Bitcoin Is the Fastest Growing Area of Venture Capitalist Funding

July 20, 2015 By: Mike Dautner

According to Mattermark data, Bitcoin is making a splash in the digital payments industry, deemed as the fastest growing sector for current startup investment options.

From mid-2012 through mid-2015, VCs have increased funding in bitcoin and digital currency businesses by 151 percent.

However, Bitcoin currently only represents a small fraction of total invested dollars, making this announcement a modest one, but with potential for a bright future.

Coming in behind Bitcoin as the fastest growing areas of startup investment are photo sharing at 150% and physical storage at 145%. In addition, space travel, transportation, hospitality, lending, and food & beverage round out the list.

These statistics are perplexing according to Tomasz Tunguz for Redpoint Ventures. According to Tunguz, “The rest of the list (of growing areas of startup investment) controverts the notion that startups and investors pursue only incremental innovations. Space travel startups look to conquer the final frontier. In addition, founders have raised capital to transform many of the fundamental industries: transportation, hospitality, lending, health insurance, and banking. But, photosharing, inevitably, continues to grow quickly, too.”

However, despite the growth in Bitcoin investments, the variance in startup investment areas may not be consolidated. Venture capital firms will look to seek areas of lesser competition. Investors will look for under-appreciated, minimally explored areas in which to finance in hopes of a larger return.