Venture capital-backed investment in cryptocurrency startups fell 25.6% in the first half of 2022 to $ 9.3 billion, compared to $ 12.5 billion in the first half of 2021. Crunchbase data The show released on July 15th.
However, the data show that the number of investment transactions increased from 456 in the first half of 2021 to 534 in the first half of 2022. This shows that small transactions increased in the first half of this year.
The Crunchbase report further states that cryptocurrency startup funding reached $ 4.2 billion in the second quarter of 2022, much like the $ 4.2 billion raised in the second quarter of 2021.
However, second-quarter 2022 funding is nearly $ 1 billion less than the $ 5.1 billion raised in the first quarter of 2022 and well below the $ 6.1 billion raised in the fourth quarter of 2021. ..
According to the report, one of the reasons for the increase in funding in the first quarter of 2022 was the large number of large funding rounds. There were six rounds over $ 400 million in the first quarter of this year, but only one such round in the second quarter.
The report emphasizes that the decline in crypto venture funding corresponds to the significant decline in VC funding this year.
Yash Patel, general partner of Telstra Ventures, who invested in FTX Exchange, said in a report:
“Yes, investment in crypto / blockchain has receded, reflecting the broader technology market.”
Patel added that the liquidity issues of centralized crypto lenders, including Celsius, are creating a similar sense of fear between VCs and users. Celsius declared bankruptcy this week.
However, despite the decline in overall VC funding, there are still people who believe in the long-term potential of cryptocurrencies.
In May, Andreessen Horowitz raised $ 4.5 billion for its fourth largest crypto fund of its kind, the fourth cryptocurrency fund.Earlier this week, Lightspeed Venture Partners publication After raising over $ 7 billion, the creation of Lightspeed Faction, an independent team built to invest in blockchain.
