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DCG Bitcoin and Blockchain Tech Summit - Opening Remarks
The October 2016 Bitcoin and Blockchain Technology Summit gathered 120 attendees and 180 investors, featuring 65 presentations and extensive networking opportunities. Digital Currency Group (DCG) aims to transform financial markets through Bitcoin and blockchain technology, with 88 investments and a global network across 25 countries. The document outlines DCG's investment strategy, key industry insights, and predictions for 2017, highlighting the growing interest in digital currency as an investable asset class.
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DCG Bitcoin and Blockchain Tech Summit - Opening Remarks
- 1. OCTOBER 2016 Bitcoin andBlockchain Technology Summit
- 2. 2 BY THE NUMBERS • 120 attendees representing 62 portfolio companies and DCG subsidiaries • 180 investors representing 120 VC’s, Family offices, funds, and corporate strategic partners • 65 presentations and a total of 900 slides • 992 one on one meetings with 2,200 individual agenda bookings via Guidebook
- 3. OCTOBER 2016 Digital CurrencyGroup The epicenter of bitcoin and blockchain
- 4. 4 We believe thatdigital currency and blockchain technology is going to transform our financial markets and will drive positive economic and social change globally OUR MISSION It is our mission to accelerate the development of a better financial system We do this by building and supporting bitcoin and blockchain companies and leveraging our insights, network and access to capital
- 5. 5 DCG TODAY • Threewholly-owned subsidiaries: • Grayscale Investments • Genesis Global Trading • CoinDesk • 28 employees at DCG and our wholly-owned subsidiaries • Launching “DCG Corporate Network” in Q1 2017 Subsidiaries Portfolio • Investments in 88 companies • Adding ~2 companies per month • Global network spanning 25 countries; largest in industry • Over 1,000 employees in DCG family Digital Currency • Own BTC, XRP, ETC, ZEC
- 6. 6 • C-Corp structureprovides us with: • Flexibility • Opportunity to build a new investing/operating model • Permanent capital • Ability to raise money from strategic investors • Potential to take DCG public WE ARE NOT A VC FUND
- 7.
- 8. 8 • Target 2-5%ownership at seed stage (invest up to $200k) • Focus on strategic life cycle investments (invest up to $500k in Series A, $1 mm in Series B) • Join syndicates with other professional investors • Back the very best teams in our target markets • Minimize conflicts of interest OUR INVESTING STRATEGY
- 9. 9 • DCG portfoliohas been the industry’s early VC pipeline • Continued success à continuing to build symbiotic relationship with professional investors DCG FUNDING ANALYSIS Announced Industry Deals $1.3 billion Mining Operators $234 million Non-Mining Deals $1.1 billion DCG Companies $755 million DCG companies raised ~70% of industry funding to date DCG INVESTING SUCCESS
- 10. 10 1. Blockchain Registry 2. Core Infrastructure 3. Enterprise Blockchain Solutions 4. Identity & Compliance 5. Payments 2.0 6. Smart Contracts 7. Trading & Tools KEY INVESTMENT AREAS
- 11. 11 DCG PORTFOLIO IDENTITY ENTERPRISE BLOCKCHAIN SMARTCONTRACTSASSET REGISTRY PAYMENTS 2.0TRADING & TOOLS CORE INFRASTRUCTURE
- 12. 12 2016 PORTFOLIO ADDITIONS Blockchain Registry Core Infrastructure Enterprise Blockchain Identity& Compliance Payments 2.0 Smart Contracts Trading & Tools Bitmark Blockstream Bloq Chainalysis 4G Capital Lighting BitOasis Everledger Jiko Services Enigma Civic Bitwala Rootstock Crypto Facilities Fluent Netki Gem Cloudwear Brave SurBTC Skuchain Snapcard Revelator Custos Joystream Tierion Elliptic Streami Token Yours
- 13. 13 • Supply chain • Trade finance • Identity & verification • Cross border payments • Digital currency as a speculative investment WE ARE EXCITED ABOUT
- 14. 14 CROSS BORDER PAYMENTS-- ON/OFF RAMPS
- 15. 15 CROSS BORDERS PAYMENTSVIA BITCOIN $0 $20 $40 Oct-15 Jan-16 Apr-16 Jul-16 Millions $0 $50 $100 $150 Oct-15 Jan-16 Apr-16 Jul-16 Millions Source: Align Commerce, BitPesa, Korbit (Hyphen), Snapcard (MassPay) Monthly Volume Cumulative Volume
- 16. 16 • Holds ~1%of all bitcoin BITCOIN INVESTMENT TRUST $0 $70 $140 9/25/13 3/25/14 9/25/14 3/25/15 9/25/15 3/25/16 9/25/16 Millions Assets Under Management
- 17. 17 • Ethereum • “Smart”Smart Contracts • Decentralized autonomous organizations • Initial Coin Offerings WE ARE NOT EXCITED ABOUT…YET
- 18. 18 • Blockchain, blockchain,blockchain -- hundreds of POCs • Business model for certain “blockchain” companies continues to be challenging; venture investing slowing • Growing number of companies hitting profitability • Bitcoin scaling debate rages on…and solutions being developed • Massive bitcoin transaction volume growth in India, Middle East, Nigeria, Russia, Venezuela • Digital currency becoming recognized as a new investable asset class, but little institutional investor interest beyond bitcoin • Central bank exploration into fiat digital currency; quiet on regulatory front INDUSTRY STATE OF AFFAIRS
- 19. 19 TOP TEN PREDICTIONSFOR 2017 1. Bitcoin as a store of value re-emerges as key theme 2. Bitcoin becomes more accessible to retail and institutional investors via ETF(s) 3. Cross border payments/remittance using bitcoin hits a $1 billion run rate 4. Exponential bitcoin transactional growth in India, Japan & Middle East 5. Explosion of blockchain POCs focusing on supply chain 6. Identity solution competition heats up…but no leader emerges 7. SEC comes down hard on ICOs 8. First >$50 mm M&A transaction 9. Micropayment models materialize 10. Bitcoin price on 12/31/17 = higher
- 20. OCTOBER 2016 Development Building aglobal platform
- 21. 21 PORTFOLIO DEVELOPMENT We connectour portfolio companies with our broad network to help fuel collaboration, growth, and development of this industry
- 22. 22 THE DCG NETWORK Portfolio(88) Academia Policy Co-Investors (700)Corporate Partners (200) Family Offices & Funds (100) Institutions
- 23. 23 KEY PORTFOLIO INITIATIVES Instorage and compute credits to DCG portfolio companies, infrastructure partner for experimentation$2M >1,000 Introductions to potential partners both within the DCG portfolio and the DCG network In the last 12 months… 40 Events for our portfolio and partners, including workshops, working groups, and webinars, both in the US and abroad 150 New relationships with corporate partners developed – including presentations to boards, executives, and technology groups
- 24. 24 THE NEXT EVOLUTION Insightson Every Startup and Consortium Partnerships & POC Matching Events & Exclusive Network Announcing… DCG Corporate Network
- 25. 25 JOIN US Contact network@dcg.cofor more information!