The majority of global crypto fundraising and M&A (mergers and acquisitions) deals in 2019 took place outside of the U.S., according to the “Big Four” consulting firm PwC.
In a report published Monday, PwC said both APAC (Asia-Pacific) and EMEA (Europe, Middle-East and Africa) regions accounted for a total of 51% of crypto fundraising and M&A deals last year - APAC (29%) and EMEA (22%).
In 2018, the share of both regions was 44% - that is an increase of 7% year-on-year. The share of U.S., on the other hand, has dropped to 48% of the total from 55% a year ago.
“We expect to see more APAC and EMEA based family offices looking at the market turbulence as a good time to invest in promising crypto companies,” said Henri Arslanian, PwC global crypto leader and one of the authors of the report.
Overall, there was a sharp decline in both the number and value of deals last year. The number of equity fundraising deals for crypto-related companies decreased by 18% last year as compared to 2018, while the value of fundraising deals fell by 40% to $2.24 billion in 2019, per the report.
On the M&A side, the number of deals decreased by 40%, and the total deal value decreased by 76%, with average crypto M&A deal size down to $17.2 million as compared to $27 million in 2018.
“The crypto industry is not immune to the global headwinds, and the number and value of crypto fundraising and M&A deals may be impacted in 2020,” said Arslanian.
In terms of top 5 investors by deal count, 2019 saw more crypto-focused firms such as Coinbase and ConsenSys providing funding, as compared to traditional VCs and incubators in 2018, per the report.
© 2022 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.