PE Tech Report


Like this article?

Sign up to our free newsletter

Blockchain and Bitcoin USD1bn ‘thoroughbreds’ to emerge in 2016, says Magister Advisors

Next year will see the emergence of at least five Bitcoin and Blockchain businesses with a valuation of more than USD1 billion, and they will all be able to justify their valuations.

That’s one of the findings of Magister Advisors’ survey of the views of the World’s leading Bitcoin and Blockchain businesses, which was carried out in Q4 2015.
Jeremy Millar, partner at Magister Advisors, M&A advisors to the technology industry, who led the research says: “Globally, financial services companies spend close to half a trillion dollars on IT.  This is the territory of thoroughbreds and workhorses, not Unicorns. We will see multiple companies raising USD100 million-plus rounds and USD1 billion-plus valuations in 2016. These valuations will be built on the opportunity of selling products and services into the largest and most profitable industry in the world, not on subsidising consumer services to drive adoption or building audiences to monetise with advertising.  These new companies will have real lasting value; they’re not creatures from a fairy tale that will fade away when their valuations, which are based, appropriately enough, on leaps of the imagination, drop.
“Goldman Sachs have put their mighty weight and considerable market influence to work with SETLcoin. This is an interesting development, as to date the announcements from large financial institutions have been focused on collaboration with technology providers and consortiums.  It’s not surprising to see Goldmans push for leadership – it is really modus operandi for the firm.
“We also expect to see an array of new blockchain-based platforms, creating the underlying technology to address a set of specific issues in financial services that a ripe for profitable improvement.”

Like this article? Sign up to our free newsletter