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The bitcoin startups of 2016 will be "thoroughbreds not unicorns"
When fintech conference producers Finovate released a list of the world’s biggest fintech unicorns earlier this year, the overwhelming majority were in lending and payments. After that, the next largest categories were real estate, insurance, and accounting. Bitcoin barely registered, with just one unicorn to its name – Coinbase.
That will change in 2016, according to M&A advisory Magister Advisors, which predicts that at least five cryptocurrency start-ups will reach a billion-dollar valuation as financial services companies pile half a trillion dollars into IT globally.
But these startups will be more than mere unicorns. Institutional Asset Manager quoted Jeremy Millar, partner at Magister saying:
This is the territory of thoroughbreds and workhorses, not unicorns. We will see multiple companies raising $100 million-plus rounds and $1 billion-plus valuations in 2016 […] These new companies will have real lasting value; they’re not creatures from a fairy tale that will fade away when their valuations, which are based, appropriately enough, on leaps of the imagination, drop.
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