The blockchain industry has attracted symbolic capital—assets and money invested for symbolic reasons—to the tune of $50 million. A recent report compiled by distributed ledger technology (DLT) research firm Futurum Research states that traditional venture capitalists are increasingly turning towards the blockchain sector and Web3.0 startups.

Rising Symbolic Capital in the Blockchain Arena

Symbolic capital refers to investments made for reasons that are not solely related to a return on investment. Instead, investors are motivated by the potential to have a revolutionary impact on the industry, and to benefit from the associated symbolism of backing early-stage, Web3.0 startups.

In 2017, investments in the blockchain space totaled a mere $3.9 billion. In the first half of 2018, that figure had already risen to a staggering $7.4 billion. And with the promise of Web3.0 technology in the offing, aspects such as decentralized finance (DeFi) and non-fungible tokens (NFTs) have opened up even more avenues for investment.

Rise of the Non-Institutional Investor

The report also highlighted the emergence of non-institutional investors, individuals who are not directly backed by large organizations. Such investors are increasingly attracted to the high-value, low-risk returns they can garner from Web3.0 startups.

Furthermore, the report noted that speculative investors have also taken a keen interest in the rise of DeFi and NFTs, bringing yet another business opportunity to the blockchain space.

Web3.0 Startups Attracting Attention

As the industry matures, a number of Web3.0 startups have already proved their worth. These include:

  • Genesis Vision: A platform which allows investors to make informed decisions based on real-time market data.
  • Ripio: A platform which offers online payment tools and services in Latin America.
  • Matic Network: A platform which enables users to build decentralized applications (dApps) at scale.
  • Sparkster: A self-executing platform that allows users to build and deploy decentralized applications (dApps).

These startups have all seen tremendous growth over the past year, attracting the attention of both institutional and non-institutional investors.

Conclusion

The report concludes that Web3.0 startups are set to gain even more momentum as the industry continues to evolve. Increased symbolic capital backed by venture capital firms will ensure that these startups continue to innovate and deliver novel solutions to the blockchain space.