Indian VCs Look to Invest in Blockchain Startups

Indian VCs to invest in blockchain. (Source: moneycontrol.com)

Cryptocurrencies’ success was clearly visible in 2017 as their prices rose manifold. This has led the Indian venture capitalists to try their hand in the crypto field. Impressed by the gargantuan gains that people who held crypto assets experienced, investment in cryptocurrencies is attracting numerous VCs. Capitalists like Accel India and Matrix Partners showed their keen interest when they closed deals with blockchain startups.

Investment in Blockchain Startups round the globe. (Source: medium.com)

Even though the Indian government’s policies are discouraging towards cryptocurrencies, they are positive about blockchain technology. The Indian government recognizes that the technology that is the backbone of cryptocurrencies has myriad benefits. This is a relief among the VCs of India as now they can look forward to tension free investment. India lagged behind in capitalizing on the success of blockchain as compared to other countries. Now, investors have realized the range of fields that blockchain can be applied in and the landscape is changing rapidly.Blockchain startups round the globe. (Source: medium.com)

Matrix Partners’ chairman Rajat Agarwal said, “We are looking at blockchain as one of the next infrastructure shifts in technology.” (Source: steemit.com) Blockchain has immense potential and is now turning into a favorite technology to invest in among Indian venture capitalists as well. It is a technological advancement that is helping various industries run more efficiently. Investment in blockchain startups might be a risky affair because of the fluctuating value of their assets. That’s why the focus will be long term investments. Some are even exploring investment options outside India.

The investors are speculative about Indian government’s stance on cryptocurrencies. RBI and former Finance Minister’s statements about cryptocurrencies are not promising. (Source: economictimes.com) However, its chances are not entirely bleak either,considering the fact that government is taking initiatives to promote blockchain. Installing the Centre of Excellence for Blockchain Technology in Hyderabad is a major step!