The 451 Take
Blockchain Startups are Making Acquisitions Despite Risks
Cryptocurrency exchange Coinbase, in particular, has made nine acquisitions between 2014 and 2018 – the latest one being San Francisco-based digital identity startup Distributed Systems. Earlier this year, Coinbase hired former LinkedIn M&A head, Emilie Choi, to run the company's M&A activities, strategic investments and partnerships. Coinbase's primary focus has been on '
In terms of strategic acquisitions, TRON Foundation, a startup dedicated to building the infrastructure for a truly decentralized Internet, has acquired major peer-to-peer network operator BitTorrent to create the world's largest decentralized ecosystem. We believe that this is a strategic transaction by which TRON expects to grow its user base and spur the adoption of its TRX tokens.
Another example is Lightyear Corporation, a universal payments network leveraging the Stellar open financial protocol, which announced a couple of months ago the acquisition of blockchain startup Chain and the creation of a new entity called Interstellar with which it seeks to accelerate the adoption of blockchain in the corporate world.
Nevertheless, this industry is not the only one that has identified the potential of blockchain technology, and we should see more M&A diversity in terms of vertical markets – we can find deals in the healthcare sector, for example. Healthcare blockchain startup Health Wizz acquired blockchain-based medical records management and interoperability provider
Csilla is a senior analyst for 451 Research’s Data, AI & Analytics channel. She currently focuses on decoding the blockchain market to help replace confusion and complexity with an examination of the technology, the competitive landscape and available solutions that are driving the market, as well as real-world use cases and deployments.
Garrett Bekker is a Principal Analyst in the Information Security Practice. He brings a unique and diverse background, having viewed enterprise security from a variety of perspectives over the past 16 years. Garrett spent over 10 years as an equity research analyst at several investment banking firms, including Merrill Lynch, where he was the lead enterprise security analyst, in addition to covering infrastructure software and networking companies.
Keith Dawson is a principal analyst in 451 Research's Customer Experience & Commerce practice, primarily covering marketing technology. Keith has been covering the intersection of communications and enterprise software for 25 years, mainly looking at how to influence and optimize the customer experience.