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Crypto Portfolio: Digital Currency Group- Pioneer in the crypto space

 Crypto Portfolio: Digital Currency Group- Pioneer in the crypto space

The industry’s most active investor, a business incubator, Digital Currency Group (DCG) ranks in the TOP 5 Venture Capital firms involved in the crypto market.

Barry Silbert, the CEO and Founder of DCG plans to build Digital Currency Group into ‘a publicly traded conglomerate like Berkshire Hathaway.’ He said,

We are a team who passionately believe bitcoin and blockchain technology will drive global economic and social change. Our unique model enables us to deploy our resources to build the bitcoin and blockchain ecosystem over the long term.”Clearly, a top priority of the Digital Currency Group’s investments is the long-term development of blockchain implementation into banking, IT and Fintech industries.

Majority of DCG’s investments has been in the Trading & Exchanges Industry but they have branched out into a vast surfeit of industries ranging from Banking to the Gaming sector across over 20 countries in 6 continents. Some prominent investments include Circle, Ripple, Hedera Hashgraph, among others.

DCG, in turn, has received investments from a number of financial institutions including Mastercard, Western Union, New York Life and Canadian Imperial Bank of Commerce, as well as the venture arms of Transamerica, CME Group, Foxconn, Prudential, plus other VC firms.

 

Eminent News

 

One of DCG’s investments that made major news is their acquisition of CoinDesk, a global media, research, and events platform in early 2016.

Later that year, DCG announced a collaboration with Amazon Web Services (AWS), that enabled enterprises to better leverage the value of blockchain technology.

The collaboration aimed to make experimentation with blockchain frictionless for both consumers of blockchain applications and those who provide them.

 

The ‘Genesis’ of DCG

 

Digital Currency Group was launched in 2015 by Barry Silbert, the founder of SecondMarket, Inc. His initial investments were as an angel investor in bitcoin companies in 2013. He provided funding for many of the earliest companies including Coinbase, BitPay, and Ripple.

The seed investments that Barry Silbert had made in the bitcoin and blockchain space enabled the combining of the two businesses built under the SecondMarket parent company – Genesis Global Trading, a bitcoin OTC trading firm, and Grayscale Investments, a digital currency asset management firm, to form Digital Currency Group.

 

No. of participations in various investment stages


Crypto Portfolio: Digital Currency Group- Pioneer in the crypto space

Source

DCG has evidently favored seed rounds and ~ 51% i.e, 69 investments have been in the seed round. Another 29% of the investments have been in Series-A round. It is conspicuously clear that DCG prefers the early funding rounds of startups.

 

Year wise Private Funding data of DCG

 

Crypto Portfolio: Digital Currency Group- Pioneer in the crypto space

Source

2018, the year that dubbed as the crypto winter, was the year that DCG increased their exposure to the crypto market and participated in several funding rounds that amounted to ~$350 million.

 

Portfolio Analysis:

DCG has made various investments in an array of startups. Some distinguishable  ones are as follows:

 

Circle is an internet finance powerhouse, built on blockchain technology and powered by crypto assets. DCG has backed Circle’s Series B, C & E rounds, raising a total of $177 million with other VCs such as Pantera Capital, Goldman Sachs among others, according to InWara’s private funding database.

 

This Dallas, Texas-based company, is a distributed public ledger that will enable anyone to easily develop globally decentralized applications. They were backed by DCG in their Venture Round along with other investors, raising capital of $18 million, according to InWara’s private funding database.

 

DCG’s latest investment is in Figure, a financial technology company with the mission of leveraging blockchain, AI, and advanced analytics to unlock new access points for consumer credit products. Figure raised $65 million in their Series-B round with the help of DCG and other investors, according to InWara’s private funding database.

 

DCG invested in Angel and Series-A round of Ripple, amounting to $29.5 million, along with other investors, according to InWara’s private funding database.

 

Although DCG established itself much later than most VC firms, it has cemented its position as a strategic investor and is building and supporting the largest early-stage investment portfolio in the digital currency and blockchain ecosystem. Over the next few years, they aim to support the best teams in the target markets by providing capital through a company’s lifecycle, providing connections in their network, and using their collective knowledge and insights to help companies grow and scale.

February has shown a significant improvement in the ICO market despite the lingering Crypto Winter. This means that Venture Capitalists and other investors have a higher prospect of investments in the coming months. Read more about the full report on February here.