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

Investment successful task capital-backed crypto startups dipped 25.6% to $9.3 cardinal successful the archetypal fractional of 2022 compared to $12.5 cardinal successful the archetypal fractional of 2021, Crunchbase data published connected July 15 shows.

However, the fig of concern deals has gone up from 456 successful H1 2021 to 534 successful H1 2022, the information showed. This indicates that determination were much smaller-sized deals successful the archetypal fractional of this year.

The Crunchbase study further stated that crypto startup backing reached $4.2 cardinal successful Q2 2022, astir the aforesaid arsenic the small little than $4.2 cardinal raised successful Q2 2021.

However, the Q2 2022 backing was astir a cardinal little than the $5.1 cardinal raised successful Q1 2022 and mode down the $6.1 cardinal raised successful Q4 2021, the study stated.

One of the reasons wherefore Q1 2022 saw much backing is due to the fact that determination were much ample backing rounds, the study said. In the archetypal 4th of this year, determination were six rounds of $400 cardinal oregon much portion determination was lone 1 specified circular successful Q2.

The study highlighted that the autumn successful crypto task backing corresponds with the larger downturn successful VC backing this year.

Yash Patel, wide spouse astatine Telstra Ventures, which has invested successful FTX Exchange, said successful the report:

“Yes, we’ve seen a pullback successful crypto/blockchain investments, mirroring the broader tech markets.”

Patel added that the liquidity issues of centralized crypto lenders, among which is Celsius, person created a consciousness of fearfulness among VCs and users alike. Celsius declared bankruptcy this week.

But contempt the autumn successful wide VC funding, determination are inactive those that judge successful the semipermanent imaginable of cryptocurrencies.

In May, Andreessen Horowitz raised $4.5 cardinal for its 4th crypto money — the largest money of its kind. Earlier this week, Lightspeed Venture Partners announced the instauration of Lightspeed Faction, an autarkic squad built to put successful blockchain, aft it raised implicit $7 billion.

The station VC crypto backing down 25.6% to $9.3B successful archetypal fractional of 2022 appeared archetypal connected CryptoSlate.