Introduction: The Decline of Blockchain Investment in China
The Chinese blockchain industry has experienced a dramatic 94% drop in investment, with only a handful of companies continuing to receive funding. According to ITζ‘ε's analysis of global unicorn companies, while the US has produced numerous blockchain and cryptocurrency unicorns in recent years, China's sector has nearly gone silent due to policy changes.
Key observations:
- π Significant reduction in blockchain sector investments
- π Zero Number Technology among three companies receiving multiple funding rounds
- π Hong Kong emerging as a standout performer in 2024 financing
Historical Investment Landscape (2015-2024)
Between 2015 and 2024, China's blockchain sector recorded:
- 1,000+ funding events
- Total investment exceeding Β₯200 billion
Investment trends showed:
- 2015-2018: Rapid growth peaking at 449 deals in 2018
- 2018-2024: Steady decline to just 29 deals in 2024
π Discover how leading blockchain platforms are adapting to market changes
Part 1: Companies With 5+ Funding Rounds
1. Zero Number Technology
- Founded: August 2016
- Specialization: Blockchain infrastructure for government, finance, automotive
- Funding: 9 rounds totaling undisclosed amounts
- Key Investors: GuLian Capital, Qingyu Fund, Pudong Investment Holdings
Achievements:
- Profitable since 2020
- 100+ enterprise clients
- National "Little Giant" enterprise designation (2024)
2. Mars Finance (Now MarsBit)
- Founded: January 2018
- Specialization: Blockchain media platform
- Funding: 7 undisclosed rounds
- Notable Investors: IDG Capital, OKCoin, Binance
- Current Status: Rebranded after 2021 regulatory issues
3. Animoca Brands
- Founded: 2014 (Hong Kong)
- Specialization: Blockchain gaming/NFTs
- Funding: 7 strategic rounds including $359M (2022)
- Investors: Sequoia China, Temasek
- Status: Planning 2025 IPO
π Explore innovative blockchain gaming platforms
Part 2: 2024 Funding Highlights
Regional Distribution
- Mainland China: 69%
- Hong Kong: 27.5% (leading region)
- Taiwan/Macau: 3.5%
Notable 2024 Fundraisers
| Company | Location | Funding | Specialty |
|---|---|---|---|
| Qbit | Zhejiang | $10M+ | Neobank services |
| Only1 | Hong Kong | $1.3M | NFT social platform |
| QED | Hong Kong | $9M total | ZK-proof blockchain |
Market Outlook and Challenges
The blockchain sector faces significant challenges:
- Regulatory uncertainty
- Reduced investor confidence
- Need for practical commercial applications
Successful adaptation strategies include:
- Focus on enterprise solutions (Zero Number Tech)
- NFT/Web3 pivots (Animoca Brands)
- Cross-border financial services (Qbit)
FAQ Section
Q: Why has Hong Kong outperformed mainland China in blockchain funding?
A: Hong Kong's clearer regulatory framework and international financial connections make it more attractive to investors.
Q: What sectors show the most promise for blockchain adoption?
A: Supply chain finance, digital identity verification, and asset tokenization demonstrate strong potential.
Q: How are surviving blockchain companies differentiating themselves?
A: By focusing on: 1) Real-world problem solving 2) Regulatory compliance 3) Sustainable revenue models beyond token sales.
Q: Is there still venture capital available for blockchain startups?
A: Yes, but with much higher scrutiny. Investors now prioritize teams with proven track records and clear monetization paths.
Q: What technological innovations are driving the sector forward?
A: Zero-knowledge proofs, modular blockchains, and improved scalability solutions show particular promise.
Conclusion
While China's blockchain investment climate has cooled dramatically, the companies continuing to secure funding demonstrate that innovative applications with clear value propositions can still attract capital. The market's future will depend on balancing technological potential with regulatory realities and genuine commercial viability.