Venture capital recedes from crypto in Q3, but not all is bleak: Report

cointelegraph.com:

In 2022, it’s no surprise that most assets are in a bear market. People have a variety of signals they look for when determining a good time to enter the market, and Cointelegraph Research’s Venture Capital Report for Q2 revealed that VC inflows stagnated at just above $14 billion last quarter, the same as Q1.

However, the third quarter did not fare as well, dropping over 66% to just $4.98 billion, as Cointelegraph Research explores in its latest Venture Capital Report for Q3. The number of deals also declined to 338 for the entire quarter, compared with Q2’s 621. While that might paint a bleak picture for the blockchain industry, there are still many positive signs apparent after analyzing all the data.

Download the full report here, complete with charts and infographics.

The Cointelegraph Research Terminal’s Venture Capital Database contains comprehensive details on deals, mergers and acquisition activity, investors, crypto companies, funds, and more. The team analyzes this data to discover the most important trends in the industry, and this latest report offers a brief overview of the highlights of the last quarter — not everything can fit into the 12-page quarterly report.

When looking at the charts on a per-quarter basis, Q3 shows a massive decline from over $14.6 billion in capital inflows in Q2 to just $4.98 billion in Q3. But as Cointelegraph Research outlined in its most recent Investor Insights report, September saw a 20.6% increase in VC interest, rising from a 2022 low of $1.36 billion in August to $1.64 billion in September.

While one data point does not make a trend, there were other activities focused on building blockchain companies and promoting Web3, such as the launching of funds like Peter Thiel-backed