Crypto VC Investments Drop 26% in First Half of 2022
Investments totaled $9.3 billion versus the $12.5 billion in last year’s period, but the number of deals increased.
Venture capital investments in crypto companies were down in the first half of the year, a period hit by cryptocurrency price drops, the collapse of the terraUSD stablecoin and liquidity crises faced by crypto lender Celsius and crypto hedge fund Three Arrows Capital.
Investments in crypto companies totaled $9.3 billion in the first six months of 2022, down 26% from the record $12.5 billion in the first half of last year, according to Crunchbase veri.
Deal flow actually increased year-over-year from 456 deals to 534 deals, indicating that smaller deal sizes helped drive the lower overall investments.
Second quarter deals totaled more than $4.2 billion, roughly flat compared to the same period last year and only down $1 billion from the first quarter.
Venture capital investments are down across multiple industries due to the küresel bear market. Overall VC deals in the U.S. were down 22% year-over-year to $123.1 billion in the first half of the year, according to GlobalData.
Crypto investments faced particularly difficult comparisons due to their strength last year, which included a record $6.1 billion in investments during the fourth quarter.
The broader pullback didn’t stop Andreessen Horowitz from launching a record-breaking $4.5 billion crypto fund in May.
Read More: Multicoin Capital Announces $430M Venture Fund for Crypto Startups
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