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A study recently published by Endeavor, a company dedicated to mentoring and accelerating entrepreneurship, estimates that the average revenue of a blockchain-related company in Latin America will reach $404,000 this year.

The figure is double the average revenue earned by Latin-based blockchain companies in 2017. However, the outlook for 2019 is even more auspicious, as the same study anticipates that revenues will average $1.2 million per company.

Endeavor conducted the study “Blockchain Insight: Blockchain, ¿La promesa de una revolución?” in conjunction with the firm Kio Networks and with the support of crypto exchange Bitso and the U.S. Embassy. After contacting 100 companies in Latin America, 65 responded and gave information about funding sources, type of technology blockchain employed, sectors of activity, applications, and human resources, among others.

Another main finding of the analysis is that most of these companies are in the development stage. These are enterprises with 1-3 years of age, between 6-10 jobs and with projected sales for 2018 of less than 500,000 dollars. The 65 companies interviewed come from the following countries: Mexico (26), Argentina (13), Brazil (10), Chile (8), Colombia (3), Peru (2), Ecuador (1), Puerto Rico (1), and Venezuela (1).

In terms of sectors of activity, 34% of the projects consulted were categorized as Financial Services, while 23% were classified as Enterprise Software & Services. While the remaining sectors represent less than 10%, among them Media, Government, Social, Health, Education, and Marketing.

The study notes that 27% of companies conducted Initial Coin Offerings (ICOs), with total revenues exceeding $100 million. Other sources of funding include seed capital, angel investors, venture capital, and funds from family and friends.

32% of the companies surveyed work with their versions of the blockchain, developed according to the particularities of the projects, while the remaining 68% use their developments on public blockchains, such as Ethereum (69%), Bitcoin (23%). Other blockchains used are Hyperledger, Litecoin, and RSK.

Martin Hagelstrom, IBM’s blockchain leader for Latin America, mentioned a similar study focused on this region of the continent during an interview with CriptoNoticias in July of this year. The survey conducted by IDC, states that in the coming years, Latin America will see one of the fastest growth rates regarding demand for blockchain technology, estimated at 127.3% in 2021. This expectation of growing demand led IBM to announce the creation of the first Blockchain Solutions Hub in Latin America, located in Sao Paulo, Brazil.