Blockchain-based startups continue to make up a sizable proportion of newly established business entities around the world.
With venture capital funding appearing to prioritize emerging technology, the blockchain industry has seen a significant influx of capital from corporate backers.
According to the Global Startup Ecosystem Report 2021, which was released on Wednesday, blockchain-based businesses account for 10% of all startups globally.
The figure is part of a larger trend in which emerging technology has become a rapidly growing sub-sector in terms of early-stage funding.
The report categorizes startups into three sub-sectors: growing, matured, and declining. Unsurprisingly, blockchain technology ranks first, with a 107 percent average growth rate, followed by agriculture technology (agtech) and new food, advanced manufacturing and robotics, artificial intelligence (AI) and big data, and fintech.
Blockchain is the second-fastest-growing sub-sector in terms of early-stage funding, according to the report, with a 121 percent increase over the last five years. Exits among early-stage blockchain startups increased by 52% during the same time period.
Silicon Valley continues to be a major source of blockchain funding, with investors such as Andreessen Horowitz regularly among the pool of backers for startups using decentralized ledger technology.
With blockchain being one of the top destinations for early-stage VC funding, it is perhaps unsurprising that Silicon Valley ranks first in ecosystem value creation, according to the report.
According to the methodology page of the Global Startup Ecosystem Report, it used survey data from more than 10,000 startup executives worldwide.
While the GSER focuses on early-stage startup funding, the details of the report are consistent with the established bullish trend for blockchain among venture capital funds.
ULTCOIN365 reported in April that VC firms had invested more than $16 billion in blockchain equity since 2012.
In just the first quarter, VC firms invested approximately $2.6 billion in crypto and blockchain startups, which is $300 million more than the total corporate investment in the sector for the entire year of 2020.