Web3 dominates venture capital interest in blockchain industry in Q2 2022

Cointelegraph Research brings an analysis of all the deals and trends from venture capital (VC) in the blockchain industry during the second quarter of 2022.

When looking at the aggregate total amount invested into the crypto industry in the second quarter, it will tell one story. However, a deeper dive into the data tells another tale. From a high level, the $14.67 billion invested in Q2 is about flat with the $14.66 invested in Q1. But, the largest chunk of that investment was in April, before the last two months of a large slump in global markets, which made even the most bullish crypto investor admit the bear market has arrived.

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The good news is that even though this did happen, funds like Andreessen Horowitz (a16z) closed a $4.5 billion crypto fund, and investment continued to flow into different sectors of the crypto industry.

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Download the full report here, complete with charts and infographics.

The Cointelegraph Research Terminal has a VC database that contains comprehensive details on deals, mergers and acquisition activity, investors, crypto companies, funds and more. Using this database, Cointelegraph Research analyzes the numbers to find the important trends in the industry. The report is just an overview of the highlights of the last quarter — not everything can fit into the 12-page quarterly report.

The numbers can lie

The total dollar value of individual deals in the blockchain industry remained flat at $14.67 billion for Q2, just barely over Q1’s $14.66 billion. This can point to an inaccurate conclusion that there is no change in VC investment trends, and everything is on a massive exponential growth curve.

The slump in traditional finance (TradFi) markets has been a headwind for the crypto markets. The risk-on to risk-off change has had a surprising impact on different sectors of the crypto sphere. These downward market pressures were only exacerbated by the collapse of Terra’s stablecoin, which brought down the overall market capitalization considerably. Macroeconomic forces have impacted venture capital firms to take a slight step back and approach projects with more caution and probably less capital allocation to reduce their risk exposure in the case of backing a bad project.