More and more companies are investing in cryptocurrencies although it is done discreetly from an institutional point of view. While some invest directly in certain projects, other companies may invest in blockchain startups, although this type of investment is less common.
Google invests 1.56 billion in blockchain companies
Blockchain technology is being adopted by many companies as we move forward in the history of technology. Google, for example, is investing in it. Blockchain is at the center of what could be a revolution on the web3, and is also used by web2 companies.
Blockdata is an analytics site that has documented the top 100 companies in the world, such as Google (Alphabet), and their investments in blockchain startups. The data is from the beginning of this year. Alphabet is currently the 4th largest company in the world, with a market cap close to $1.5 trillion.
Thus, the parent company of Google, Alphabet, is the one that has invested the most in the crypto sector since last September:
- Alphabet ($1.5 billion invested);
- BlackRock ($1.17 billion invested);
- Morgan Stanley ($1.11 billion invested);
- Samsung ($979 million invested).
Many of these investors are companies whose primary business has nothing to do with capital management. A way to highlight the fact that the blockchain goes far beyond crypto-currencies.
Alphabet has invested nearly $1.56 billion between September 2021 and June 2022. The program aims to finance the web3 giants of tomorrow, the internet of tomorrow (or today). Concretely, the structure has invested in:
- FireBlocks (digital asset storage and transfer platform)
- Dapper Labs (NFT company in the video game sector)
- Voltage (Bitcoin infrastructure for businesses)
- Digital Currency Group (cryptocurrency capital company)
Research shows that major institutional brands participated in 71 funding rounds. These involve around 60 blockchain or crypto-focused startups. It turns out that most of these startups provide services around NFTs. However, game markets and companies are also popular.
After web1 and web2, Google wants to help build web3
Google hopes to help build Web 3, like they helped build Web 1 and 2. Google helped build the first two visions of the web, and they hope to help build Web 3. It’s important to understand Google’s interest in building web 3, because it was Google that helped build the first two generations of the internet.
Internet users in the 90s had access to free information online at sites like Yahoo and AOL. This generation of the Web is called Web 1.0, and it was the beginnings of the Internet.
The early 2000s marked the beginning of Web2. A more open Internet for users thanks to the arrival of giant sites like Google or Facebook. Users were able to be more active on the web by posting on blogs, social sites, or forums.
Bitcoin is part of the web3 generation, the third generation of the Internet. The web3 is a more decentralized version of the Internet, not owned by any large corporation. The Web3 is intended to be the combination of the innovations of the web2 and to replace third parties with blockchain technology, to allow people to have direct interactions without intermediaries.
The Metaverse is a virtual 3D world that will be connected to the Internet. This web, still in its infancy, will give users the ability to use cryptocurrencies to earn money from their content and use NFTs to exploit their property rights on the web.
Over $6 billion has been invested in blockchain-related startups by major multinational corporations. Blockchain companies have also never raised more money than they do right now, despite the crypto winter that is descending on our wallets. All of this points to the adoption of cryptocurrency and so-called Web 3 technologies.