TechFlow news — Erik Svenson, co-founder and CFO of blockchain infrastructure firm Blockstream, said the crypto industry has underperformed over the past year. With increased regulatory scrutiny and growing investor skepticism, capital allocation has sharply declined from its 2021 highs, making it difficult for many young startups to raise funds—and this is now affecting the Bitcoin ecosystem. "The Bitcoin space itself has always been undercapitalized," Svenson noted, adding, "We made an early decision not to issue our own token and avoided doing an ICO like many other projects, so we've relied on more traditional venture capital."
According to PitchBook data, Blockstream raised $125 million in late January, bringing its total funding to approximately $400 million. As of August 2022, the company had a post-money valuation of $2.49 billion.
