Blockchain VC Funding Surpasses 2021 Total Despite Declining Since May
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It’s been a tough year for crypto and venture capital activity bears that out. FTX’s collapse in November was the latest and most shocking in a series of shutdowns by major market players this year – including Celsius, Voyager and BlockFi – that have shaken investor sentiment and wiped out $1.5 trillion in market cap from the cryptocurrency space.
Blockchain venture capital funding has been on a downtrend since May 2022 and November was no different, with inflows falling even further. However, total capital inflows for 2022 have surpassed 2021 by nearly $6 billion.
According to Cointelegraph Research, VC funding fell 4.8% in November to total $840.4 million — up from $843 million in October. Cointelegraph Research Terminal’s Venture Capital Database — which includes comprehensive details on deals, mergers and acquisitions, investors, crypto companies, funds and more — shows that the number of unique deals fell from 69 in October to 61 in November.
Download and buy the latest report on the Cointelegraph Research Terminal.
It’s not all bad news, however. Despite a slowdown in crypto VC funding since May, total funding for the year has surpassed 2021 tally. Cointelegraph Research’s VC database shows a total of $36.1 billion raised in 2022, with less than two weeks left of the year. In contrast, total funds raised in 2021 were $30.3 billion.
Infrastructure projects take up half of the pot in November
While the Web3 sector closed the most deals in November with 23, the blockchain infrastructure sector had the largest share of investor dollars. The sector attracted more than half of the funding in November, securing $483.9 million in venture capital.
Although the infrastructure sector took the lion’s share of the funding, almost half of that sum was secured by one company, Matter Labs. The developer behind the Ethereum Virtual Machine compatible zkSync announced Nov. 16 that it has closed a $200 million Series C funding round co-led by Blockchain Capital and Dragonfly and co-led by Lightspeed Venture Partners , Variant and existing investor Andreessen Horowitz are participating. The company has now raised $458 million in funding across all rounds, including $200 million from BitDAO to fund ecosystem projects.
For a full analysis of the blockchain VC sector in November, see Cointelegraph Research’s monthly “Investor Insights” report. The research team breaks down the major market-moving events of the past month and key data from the various sectors of the industry, including venture capital.
The opinions expressed in this article are for general information purposes only and are not intended to constitute specific advice or recommendations for any individual or specific security or investment product.
