INSIGHTS CV VC Top 50 Report H1/2020 Zug, 7th of August 2020 The blockchain industry in Crypto Valley, Switzerland and Lichtenstein, analyzed and visualized. Technology Partner In collaboration with CV VC Top 50 Report H1/2020 TABLE OF CONTENTS Broad growth fueled by Blockchain industry in Protocols and Financial Crypto Valley visualized 01Applications 02 Summary .5 Crypto Valley Top 50 Companies per sector .14 About .5 Crypto Valley Companies per canton .15 Crypto Valley Top 50 Companies Sector Review .6 Crypto Valley Top 50 Companies Employment Levels .16 • 01 Blockchain Technology .6 Crypto Valley Companies valuation and funding .17 • 02 Blockchain Financial Industry .6 Blockchain Technology Companies Valuation .18 • 03 Blockchain Other Industries .7 Financial Industry Companies Valuation .19 Crypto Valley Top 50 Challenger Companies .8 Other Industries Companies Valuation .20 Companies and employees in Crypto Valley .8 Valuation and funding of companies in Crypto Valley .9 Regulatory environment in Crypto Valley .9 Impact of the Pandemic in Crypto Valley .10 A brief history of Crypto Valley .10 Universities engaged in Blockchain and DLT .11 Crypto Valley Top 50 Players by key areas Companies listed by 03sector 04 Methodology and Selection Crypto Valley Top 50 .22 Banks active in Crypto .37 Blockchain Technology .23 Blockchain focused Venture Capital Firms .38 Blockchain Financial Industry .27 Blockchain Technology Solution Providers .39 Blockchain Other Industry .31 Blockchain and Crypto Savvy Law Firms .40 Crypto Valleys Top 50 Challenger Companies .32 CV VC Top 50 Report H1/2020 TABLE OF CONTENTS 05CV VC Portfolio 06About Investment Thesis .42 About .45 CV VC Portfolio Companies .43 CV VC Top 50 Report H1/2020 Broad growth fueled by Protocols and Financial Applications Technology Partner In collaboration with CV VC Top 50 Report H1/2020 Broad growth fueled by Protocols and Financial Applications . 5 Summary Key Data • Crypto Valley Top 50 companies are valued at such, Crypto Valley’s first non-protocol layer unicorn with large royalty collection agencies. $37.5B in total. may not be too far away. • Total Funding of Top 50 companies reached $3.7B. CV VC’s research reveals eight crypto hotspots in Companies which raised substantial amounts inclu- Crypto Valley: Zug, Zurich, Liechtenstein, Geneva, Tici- • Total number of firms in Crypto Valley is 919. de: Bitcoin Suisse AG ($48M), 4ART Technologies no, Neuchatel, Vaud, Lucerne and Bern. The largest • Total employment of blockchain companies in AG ($45M), METACO SA ($20M), Crypto Finance number of companies is in Zug with 439, as it remains Crypto Valley, which includes Switzerland and AG ($14M), Near Protocol ($12.1M), Taurus Group SA the heart of Crypto Valley. Liechtenstein, increased to 4784. The Top 50 (undisclosed), Sygnum Bank AG (undisclosed amount companies employ 776 employees in Crypto in second round). The regulatory framework in Switzerland keeps evol- Valley. ving rapidly and its regulatory clarity is now being • Near Protocol, Velas Network and Aave have Financial services continue to push ahead with a enhanced with significant functionalities for digital been added to the list of Crypto Valley Top 50 broader adoption of cryptocurrencies and DLT infras- assets, including securities. Switzerland opted to companies. tructure (storage, settlement), as evidenced by a modify a number of existing laws, introducing changes • Crypto Valley counts 6 Unicorns (i.e. projects number of successful funding rounds among Switzer- only where necessary. The result is the world’s leading valued at more than $1B): Ethereum ($25.3B), land’s main crypto players and the work of established regulatory framework and legal basis for the issuan- Cardano ($2.2B), Dfinity ($2B), Tezos ($1.8B), players such as InCore Bank AG to provide key infras- ce, trading, and ownership of digital assets, including Polkadot ($1.2B), and Libra ($1B). tructure to other banks. securities. The DLT Act is expected to go into effect • Valuation of CV VC Top 50 companies excluding in the first quarter of 2021. Ethereum amounts to $13.8B. The valuation of protocols that count Crypto Valley as their home has increased significantly. All 6 Unicorns Key Takeaways are protocol layer projects of which the listed ones saw their network value increase significantly. The markets About Crypto Valley has further matured and added substan- are rewarding higher degrees of decentralization, tech- ce in the first half of 2020. Despite challenging circum- nical milestone achievements, well-performing testnets The CV VC Top 50 Report stances because of COVID-19, the number of firms in and mainnets with increased valuations. Crypto Valley has increased to 919, and employment The CV VC Top 50 Report is created by CV VC AG reached over 4700 in Switzerland and Liechtenstein. Outside of financial services, the protection of inte- in collaboration with its technology partners inacta llectual property and the tracking of IP transactions is and PwC. The CV VC Top 50 is a periodical Report on Growth and funding have been driven across all areas, attracting large investments and valuations. 4ARTech- market valuation developments from Crypto Valley, including protocols, financial services, and other appli- nologies AG, which provides application infrastructure which includes Switzerland and Liechtenstein. The cations. The big story has been the funding of compa- for the art market, has raised $45M at a valuation of report highlights the diverse blockchain and crypto- nies by investors. The flows of money from VCs and $250M. In addition, its utility coin for use in its ecosys- currency ecosystem which consists of startups, corpo- investors are confirming the view that the clear regu- tem has an implied valuation of $250M. Utopia Music rations, and government entities. The CV VC Top 50 latory framework will enable companies to execute AG, which is tracking the use of music, is nearing a Report and CVMaps.ch are the authoritative curators on their business plans and become very valuable. As triple-digit valuation as it is engaging in pilot projects of information on of blockchain companies active in Crypto Valley. Technology Partner In collaboration with CV VC Top 50 Report H1/2020 Broad growth fueled by Protocols and Financial Applications . 6 Crypto Valley Top 50 decentralization where nodes are operated by the 02 Blockchain Financial Industry community. At this stage, delegation, incentive sche- Companies mes and reward systems are introduced to drive Key actors in Crypto Valley focusing on financial servi- community adoption. At the end of this phase, Carda- ces have remained consistent in their continued efforts no claims to be the most decentralized public block- to drive innovation with regards to cryptocurrencies Sector Review chain network. as an asset class, as well as developing the infrastruc- ture for digital assets, services, and related products. 01 Blockchain Technology The Tezos Foundation underwent a change in its board structure with Ryan Jesperson, who had successfully Regulatory clarity continues to be a key advantage Crypto Valley is home to important protocol layer led the foundation to stability, stepping down as foun- for companies in Crypto Valley, especially in finan- projects and many foundations and their related deve- dation chair. The foundation board is solely respon- cial services. As of late, Liechtenstein has enacted its lopment companies have chosen it as their main domi- sible for its composition and has elected Hubertus Blockchain Law. In Switzerland, the first chamber of cile. In the first half of 2020, there was a large increase Thonhauser as the new Chair. Tezos is advancing its the Swiss Parliament has passed the DLT Legislation in market capitalization of networks and the message technology in many areas and has established part- Act, an umbrella act which amends 9 Federal Statutes was very clear: Projects are delivering on their techno- nerships in key verticals, notably finance and gaming. and further clarifies the characteristics of digital assets. logy, and markets are rewarding progress. In addition, Tezos continues to build out the team at When enacting this law in early 2021, Switzerland will its domicile in Zug. The transparency introduced by be the undisputed global leader for DLT regulation, In this report, Near Protocol and Velas Network were the Tezos Foundation for its grant process, internal secondary markets infrastructure, and defining the added to the Crypto Valley Top 50. Near Protocol controls and progress reports serves as a role model characteristics of digital assets. was able to raise substantial amounts from renowned for the entire industry. investors and Velas has seen its network value increase Aave was added to the Crypto Valley Top 50 as the significantly. Bitmain was removed from the Top 50 Following a successful raise, Dfinity has aggressively first DeFi (Decentralized Finance) project. With AAVE, Report, as it no longer has any significant presence in recruited talent both in Crypto Valley and from around Crypto Valley counts a well funded DeFi project as part Crypto Valley. the globe. It reached two major milestones where it of the CV VC Top 50. The project is Venture Capital demonstrated applications running on its open plat- backed and has rolled out several lending pairs, fueling Ethereum has been under pressure to deliver on miles- form, including a social network and a video sharing a strong increase in network valuation. tones and challenging technical