Sunday, August 21, 2022

Blockchain Venture Capital Funding Down Over 43% In July: Report

Blockchain Venture Capital Funding Down Over 43% In July: Report

Traditionally an indicator of the health of the industry, the boom in venture capital finance in the blockchain sector looks set to slow after seven consecutive increases in 2021 and the first half of 2022. According to Cointelegraph Research, inflows into the venture capital market blockchain in July 2022 fell by 43% compared to the previous month.

The Web3 segment continues to attract the majority of investor interest, including GameFi and Metaverse. But the decline in capital gains should be seen in context, as the numbers are close to the same period in 2021, when the cryptocurrency market was bullish.

The capital enters the nose in July

Even the most optimistic bitcoin fans seem to have given up on a long, cold winter, a long, cold winter at best, and random crab prices. Venture capital is not immune to negative sentiment, as evidenced by the decline in cryptocurrencies in private finance. As noted in the second quarter venture capital report released recently by Cointelegraph Research, the average venture capital industry value fell 16% to $ 26.8 billion in the second quarter and the 2021-2022 crypto train is going. coming to an end.

Cointelegraph Research's risk terminals database, which details operations, mergers and acquisitions, investors, cryptocurrency companies, funds and more, showed that July total operations fell 26% from the previous month, continuing the downward trend in average prices. .

For reports and databases, visit the Cointelegraph search terminal.

Total equity financing fell 43% to $ 1.98 billion in July from $ 3.5 billion in June. These numbers are easy to take negatively, but compared to 2021, the venture capital market is in a very healthy state. In 2021, a total of $ 30.5 billion of capital entered the blockchain space. Total revenue in July 2022 surpassed that figure with $ 31.3 billion in investments this year, although difficult macroeconomic conditions led to losses and some controversy in the cryptocurrency market, such as the Earth crash in May.

 Web3 dictates the needs of investors

Venture capitalists changed their investment strategy in the second quarter in favor of decentralized finance (DeFi) Web3. This trend continued in July, with 44% of Web3 investments and 55% (78) of 141 transactions. Shares in DeFi capital continue to decline, with the industry accounting for 27% of all funding and just 17% of all transactions completed in July. Additionally, GameFi accounts for 20% of the 78 offerings, while Metaverse accounts for 17%.

Download and purchase this report from the Cointelegraph search terminal.

Check out the monthly "Investor Insights" report released recently by Cointelegraph Research for a comprehensive analysis of the risk blockchain industry for July. The research team analyzed the most important market events of the last month and relevant data from various sectors of the economy, including venture capital.

 Fundraising of July Bonanza

Fundraising data for July showed a sharp decline in venture capital deals with five companies that had secured more than $ 100 million in funding. Fundraising in July was $ 15.4 trillion, up 61% from the $ 9.5 trillion raised in June. Having previously backed several cryptocurrency and blockchain-related companies, Sequoia Capital China alone raised $ 9 trillion in July, indicating strong investor interest in the Chinese market despite China's crackdown on tech companies.

Exceed venture capital funding in 2021

Investor interest is turning to the Web3 and uncertainty in the DeFi space is hurting investor sentiment. The downturn in the cryptocurrency market and an uncertain macroeconomic environment are weighing on private finance, but the outlook remains positive. While total funding, deals and transaction prices drop each month, venture capital inflows remain at the level of the second quarter of 2021, when the market was on the rise.

The article is taken from Cointelegraph Research Terminals' comprehensive venture capital database. This article is for informational purposes only and does not constitute investment advice, investment analysis or an offer to buy or sell any financial instrument. In particular, the document is not a substitute for individual investment or other advice.

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