Venture capital firm, MMC ventures <a href="https://www.mmcventures.com/wp-content/uploads/2020/04/MMC_Crypto-Winter-or-Crypto-Spring_Blockchain-2020.pdf" target="_blank" rel="noopener">reports </a>that there's a paradigm shift as cryptocurrency and blockchain startups in the UK are going back the equity financing route as the initial financing offering (ICO) has become extremely difficult. The numbers from previous years back these claims as ICOs raised a substantial $880 million in 2018. However, in the last year, it managed just over a quarter of it, $251 million.
<h2>Report by MMC Ventures Prove The Age of ICO is Gone</h2>
MMC ventures state that the ICO facade of 2018 was welcomed by the community, but now reality is seeking in.  Equity funding is slowly but steadily back on its way up and recorded its second strongest year in 2019, by raising $210 million.

<img class="aligncenter wp-image-168568 size-full" src="https://www.cryptoknowmics.com/crypto/wp-content/uploads/2020/05/ico-1200x620.png" alt="" width="1200" />.

The firm states that new businesses and startups are going back to the basics and traditional capital-raising strategy like equity funding are back on the cards again. MMC ventures state that for the major part of the decade the blockchain startups that have been formed since 2008 has chosen to not look past anything but the ICOs, and just 9% of them took the equity funding route for raising funds. 

It seems that is about to change now, as the ICO bubble is broken now. Equity funding might not raise as much capital or at the same pace, but it is a more efficient, steady and a reliable source to be deployed.

Manager of MMC Ventures, Asen Kostadinov has stated that while from far away the growth rate might appear low and insignificant, but the foundations that are being laid are solid and could lead to sustainable growth. The manager also confirmed that the firm has a solid interest in blockchain and would continue to invest in it after investing in the Copper startup. These blockchain startups in the U.K. are mostly involved in the financial sector.

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Equity Funding Gaining Prominence as ICO Bubble Fades- MMC Ventures

The Grand numbers ICOs registered in 2018 could not be met again in 2019, as new blockchain startups turn to equity funding,confirms MMC Ventures.

Zain is a fervid fan of bitcoin and has been meticulously covering the field for a fair amount of time now. An aficionado of Spider man, Liverpool and Slim Shady.

Equity Funding Gaining Prominence as ICO Bubble Fades- MMC Ventures

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