Researchers discovered that investments in blockchain-based cybersecurity startups yield significantly higher returns for investors than similar projects using artificial intelligence (AI), machine learning, cloud computing, and other technologies.
A team of researchers from Switzerland found that blockchain startups have the highest expected annual arithmetic (AAR) and log returns among cybersecurity projects, at 177.27% and 105.42%, respectively.
In essence, investing in blockchain startups proved to yield higher returns for investors compared to investing in other sectors of the cybersecurity market, such as AI-powered projects, machine learning, and cloud computing.
Researchers specifically noted that the sample included only cybersecurity startups, excluding large-scale projects like Nvidia’s GPU or OpenAI’s GPT.
According to the study, blockchain projects in cybersecurity not only deliver the highest profitability but also demonstrate the most active development. On average, blockchain startups go from their first funding round to their initial public offering (IPO) in less than three and a half years, while other sectors in the cybersecurity market typically take four to seven years.
Analysts attribute the heightened investor interest in blockchain startups to the increasing fascination with various crypto projects. In 2023 alone, investors poured over $2.2 billion into crypto funds, while crypto startups secured $1.9 billion in venture capital funding in Q4.
