Blockchain venture capital funding down over 43% in July: Report
Typically a lagging indicator of the sector’s health, the explosion of venture funding in the blockchain sector in 2021 and the first half of 2022 appears to be cooling off after seven consecutive sectors of growth. According to Cointelegraph Research, inflows in the blockchain venture capital market have declined by 43% month-on-month in July 2022.
The Web3 sector, including GameFi and the Metaverse, continues to command the lion’s share of investor interest. But, the decline in capital inflows should be viewed in context as the numbers are close to the same period in 2021 when the crypto market was in a bull run.
Even the most bullish Bitcoin maximalists seem resigned to the bleak reality of a cold long winter as cryptocurrency prices crab along with the occasional bounce, at best. VCs are not immune to negative sentiment, confirming that crypto’s recent downturn is beginning to show in private funding. As revealed in the recently published Q2 Venture Capital Report by Cointelegraph Research, the average deal value in the venture capital industry has declined by 16% to $26.8 million in Q2, and the crypto VC train of 2021-2022 is likely running out of steam.
The Cointelegraph Research Terminal VC database data that contains comprehensive details on deals, mergers and acquisition activity, investors, crypto companies, funds and more outlines that in July, the total number of deals declined 26% month-on-month, with average deal values continuing their downward trend.
For access to reports and databases, visit the Cointelegraph Research Terminal
Overall capital funding plummeted 43% in July to $1.98 billion from June’s $3.5 billion. It’s easy to view these figures negatively, but when compared to 2021, the VC market looks to
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