Strategic Market Research (Venture Capital)
Illuminating Investment Trends and Decision-Making
Overview
In collaboration with four leading UK venture capital (VC) funds and a prominent data provider, we conducted a research project to understand the investment decision-making process in the UK blockchain sector. This study combined comprehensive secondary data analysis with interviews of seasoned VC professionals to assess the factors influencing pre-investment screening and due diligence (DD) for blockchain start-ups.
Objectives
This research aimed to provide actionable insights into the decision-making processes of UK venture capital (VC) funds investing in blockchain start-ups. The study's objectives included:
Identifying the landscape of blockchain start-ups and VC firms in the UK, mapping active investors, and analyzing funding trends.
Uncovering key factors that influence VC pre-investment screening and due diligence processes, with a focus on blockchain ventures.
Our Approach
We utilized a structured, multi-faceted research methodology to ensure comprehensive coverage of the topic:
Secondary Data Analysis: Mapped 517 fundraising deals across 220 blockchain start-ups, identifying 33 UK VC funds actively backing 48 ventures in the space.
Qualitative Research: Conducted semi-structured interviews with four highly experienced VC professionals, including managing partners and investment managers, to gain first-hand insights into their decision-making processes.
Results and Impact
The research provided a granular understanding of how UK VCs assess blockchain ventures:
Top Investment Criteria: VCs prioritized the quality of the founding team, followed by product/technology innovation and market growth potential.
Blockchain-Specific Insights: Challenges such as regulatory structures, financial valuation methodologies, and technological maturity emerged as key considerations.
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