VC crypto funding down 25.6% to $9.3B in first half of 2022


Funding in enterprise capital-backed crypto startups dipped 25.6% to $9.3 billion within the first half of 2022 in comparison with $12.5 billion within the first half of 2021, Crunchbase information printed on July 15 reveals.

Nevertheless, the variety of funding offers has gone up from 456 in H1 2021 to 534 in H1 2022, the information confirmed. This means that there have been extra smaller-sized offers within the first half of this 12 months.

The Crunchbase report additional said that crypto startup funding reached $4.2 billion in Q2 2022, practically the identical because the little lower than $4.2 billion raised in Q2 2021.

Nevertheless, the Q2 2022 funding was practically a billion lower than the $5.1 billion raised in Q1 2022 and means behind the $6.1 billion raised in This autumn 2021, the report said.

One of many the explanation why Q1 2022 noticed extra funding is as a result of there have been extra massive funding rounds, the report stated. Within the first quarter of this 12 months, there have been six rounds of $400 million or extra whereas there was just one such spherical in Q2.

The report highlighted that the autumn in crypto enterprise funding corresponds with the bigger downturn in VC funding this 12 months.

Yash Patel, basic associate at Telstra Ventures, which has invested in FTX Change, stated within the report:

β€œSure, we’ve seen a pullback in crypto/blockchain investments, mirroring the broader tech markets.”

Patel added that the liquidity problems with centralized crypto lenders, amongst which is Celsius, have created a way of worry amongst VCs and customers alike. Celsius declared chapter this week.

However regardless of the autumn in total VC funding, there are nonetheless those who imagine within the long-term potential of cryptocurrencies.

In Could, Andreessen Horowitz raised $4.5 billion for its fourth crypto fund β€” the biggest fund of its form. Earlier this week, Lightspeed Enterprise Companions introduced the creation of Lightspeed Faction, an unbiased workforce constructed to spend money on blockchain, after it raised over $7 billion.

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