First-of-its-Kind Report from the United States Blockchain Coalition Highlights Significant Economic Impact of Rapidly Growing Web3 Industry
New Data Highlights Resilient Economic Impact of Web3 Industry Amidst Changing Digital Assets Landscape Propelled by Enterprise Applications
SEATTLE, July 26, 2023 /PRNewswire/ -- The United States Blockchain Coalition (USBC), a first-of-its-kind organization built to drive multistate collaboration and maintain American leadership in digital asset, Bitcoin, and distributed ledger technologies (DLT), today announced the launch of a new report, The State of Web3 - Economic Activity Analysis Across the U.S. Prepared by innovation consultancy firm Moonbeam Exchange, the report illustrates increased traction around enterprise applications of blockchain technology and burgeoning research and development investment. The report explores the current Web3 landscape within each state, showcasing investment and startup activity, innovation ecosystems and academic research.
The report finds Web3 is no longer a nascent industry, but one with a significant footprint and impact on the broader economy and workforce. This growth is largely driven by startup activity, but investment from incumbents continues, with 276 of Fortune 1000 companies focusing on Web3 research and development (R&D). Sectors like finance, technology, retail, media, and healthcare are the most active in the sector. Since 2008, the Web3 industry has created more than 200,000 jobs and received over $107 billion in capital investments.
"The blockchain-based industry presents unprecedented opportunities, both for today and tomorrow," said Arry Yu, Founder and Co-Chair, United States Blockchain Coalition. "The technology has already made significant strides - enhancing transparency, security, and efficiency across many sectors - and will serve as the foundation as we move toward a digitally native future. I commend the states that have stepped up to fill the void in regulatory innovation nationwide, and are already leveraging the potential of this groundbreaking technology."
The U.S. is a hub of blockchain innovation, with numerous startups, research institutions, and industry incumbents driving advancements in the field. Since 2007, more than 5,700 Web3 related startups have launched, with peak activity in 2017 (932), 2018 (898) and 2021 (798). Despite uncertainties surrounding digital assets, federal government investment in blockchain is steadily increasing through contracts, grants and Small Business Innovation research (SBIR) and Small Business Technology Transfer (STTR) Programs. Since 2013, the National Science Foundation, Department of Defense and Department of Energy have been top funders of new technology through implementation-focused awards with 168, 142 and 39 awards, respectively.
"Our ecosystem has primarily been driven by startups and venture capital, but institutions and traditional industries are witnessing the direction we're headed and are opting for innovation over stagnation," said Lee Bratcher, Co-Chair, United States Blockchain Council and President, Texas Blockchain Council. "We're proud to be a state that enables blockchain-based businesses to thrive by ensuring regulatory clarity and maintaining a welcoming business environment. I believe this combination is a catalyst for continued growth and innovation in Texas and beyond."
Key Takeaways:
National
- Enterprise applications of Web3 continue to gain traction through cybersecurity, smart contracts, and supply chain use-cases.
- Since 2007 more than 5,700 Web3-related startups have been created, with more than $42 billion in total venture capital investment secured. Total investment in the sector, including VC, M&A, PE and IPOs, is over $107 billion.
- The Web3 industry created 30 unicorns ($1 billion and greater valuation) and 257 exits (46 IPOs and 211 M&A) since 2008.
- Analysis suggests that regulatory clarity and support is good for business with correlating increased investment.
- Web3 companies account for hundreds of thousands of jobs nationwide, led by small firms with under 50 employees.
- Government is a growing adopter and funder of Web3 R&D, with a particular focus on commercialization.
Individual States
- California, New York, Florida and Texas are home to 61% of all startups in the industry.
- California (1,774)
- New York (969)
- Florida (399)
- Texas (342)
- California, New York and Florida also lead the country in Web3 venture capital investments, with $18 billion, $9.7 billion and $2.2 billion, respectively.
- These larger states dominate startup formation and also outperform smaller states on international investment attraction.
- Despite this, many smaller states are making an impact
- High domestic investment activity: Texas and Georgia
- High per-capita investment: Delaware, Nevada, Wyoming, New Jersey, and Utah
- Notable single-industry players: Tennessee (healthcare), Nevada (gaming), Maryland (Government)
Founded in June 2021, the USBC is the only organization with a multi-state focused approach, leveraging hyperlocal relationships in over 46 states to seek consistent policies at the state level through alignment on public policy and legislative priorities. Led by representatives from Texas, Washington, California, Florida, Wyoming, Virginia, Alabama, and Pennsylvania, the USBC highlights and catalogs use cases, provides accessible education to policymakers, builds relationships with regulatory bodies and agencies, and proactively seeks new partnerships with industry, government, academia, entrepreneurs and investors to meaningfully grow the sector across the country. Notably, the USBC counts the nation's largest technology industry association, Washington Technology Industry Association, as one of its founding members.
About the U.S. Blockchain Coalition
The U.S. Blockchain Coalition (USBC) is a proactive collaboration of state associations, private entities, and influential individuals across the United States that drives a national conversation about emerging technology policy, education, and adoption. The U.S. Blockchain Coalition is the information, insight & analytics bureau for emerging technologies, like blockchain, to provide strategy, policy guidance, and model legislation across the country. The USBC's mission is to share best practices, lessons learned, improve operational efficiency for each member, improve the purchasing power for the benefit of each member, and to consolidate political influence. The Coalition serves as the convener and the subject matter experts for digital industries and institutions with a multi-state focused collective voice to better advocate for constructive public policy and educate key stakeholders.
The USBC is actively recruiting new members and advisors to join its multi-state focused federation. If your state should be recognized as a leader for digital assets, Bitcoin and DLT, join us here.
About Moonbeam
Moonbeam is a boutique consulting service for the innovation economy, specifically corporate innovation labs, enterprise investors, economic development organizations, and startups. They leverage Moonbeam Exchange, a data science platform that utilizes over 100 data sources to aggregate intelligence and insight for the entire innovation ecosystem from startup investment, to government contracts and beyond. Moonbeam accelerates the pace of innovation by removing the friction between enterprise level clients and their innovation needs, through market landscape research, innovation technology scouting, comprehensive market analysis and innovation program development and management. Moonbeam Exchange, LLC, (Moonbeam) has no connection with Moonbeam Network or the Moonbeam Network Platform.
SOURCE United States Blockchain Coalition
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