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Crypto trends: Deloitte invests in blockchain-AI powered API platform, Fractal Labs

Crypto trends

Management, auditing and consulting giant- Deloitte made headlines recently when it invested an undisclosed amount in London-based Fractal Labs. Fractal Labs is an API platform powered by AI and blockchain technology and aims helps small-to-medium enterprises (SME’s) gain access to better Banking and Financial Services than what is available currently.

According to InWara’s Venture Funding database, Fractal Labs had raised a cool $1.03 million from VC firms such as Lifeline Ventures, Seedcamp, ACE & Company back in 2015.

Globally, the small-to-medium enterprises funding gap is estimated to be around a staggering $4 trillion, hence there is great potential for growth in this market. In addition to this, SMEs play a critical role in economies by helping create jobs and wealth.

In retrospect, Deloitte has made a few other investments in this space.


Deloitte’s previous investments in the blockchain space 

According to InWara’s Venture Funding database, Deloitte has previously invested in two tech enterprises. 

Just prior to Fractal Labs, Deloitte had invested in SendFriend- Back in 2018, Deloitte had participated in Pre-seed investment round valued at around $1.7 million. SendFriend is a next-generation remittance service company and is currently among the smartest ways to send money to countries like the Philippines. The company offers faster and cheaper remittances services when compared to traditional services. 

The first investment was made back in 2016 in a blockchain startup called SETL. Although the funding amount wasn’t revealed. SETL is a London based startup that aims to leverage cutting edge technology such as Blockchain to Payments and Settlement. 

There seems to be a pattern here, Deloitte is investing in startups that could play a critical role in upcoming markets and are often ahead of competitors due to their technical competency. A wise strategy! Also, these startups are also in the Financial Services and Banking industries. But is this a smart decision?


Venture Funding by industry sector-April 2019

Crypto trends

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During the month of April 2019, Blockchain and Crypto startups have attracted a significant amount of smart money. A whopping $341 million was invested during this month alone (source).

But only 17% of this was investment was in Financial Services enterprises or akin to ~$51 million. The sector that attracted the most funds were Trading and Investing at a mind boggling $204 million.

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