In the first quarter of 2022, venture capital activity in several blockchain areas grew at an unprecedented rate. In 2021, over $30 billion was invested in infrastructure, non fungible tokens (NFTs), decentralised finance (DeFi), centralised finance (CeFi), and Web3 by venture capitalists in 2021. If 2022 was going to beat it, the bar was set quite high. Capital inflows from venture capitalists totaled over $14.6 billion in the first quarter of 2022, accounting for nearly half of all capital investment in the previous year.
In the first three months of 2022, over 500 separate deals were struck across the five primary areas listed above. A Research examined and evaluated its database of deals, M&A activity, investors, and crypto startups to generate a 12-page analysis of the key VC operations in the crypto world.
The blockchain industry received historic capital inflows in the first quarter of 2022. Since the beginning of 2021, each quarter has seen an increase in total money committed to this field, culminating in Q1 2022, when over $14.6 billion in venture capital was invested. The average financial worth of each deal has risen as well, to roughly $32.3 million in the last three months.
Individual deals increased as well, surpassing the previous high of almost 500 in Q1 2022. The trend is likely to continue, as the industry is attracting fresh money from long-time venture capital firms in established markets like Bain Capital and Sequoia Capital. Long-time crypto players, including OpenSea, Coinbase, Fireblocks, FTX, and Blockchain.com, consolidated the sector through acquisitions. In every case, these strategic acquisitions broaden the scope of each firm’s main business offerings.
Venture capitalists seek to address these challenges by providing not just the financing required to get a project off the ground, but also a network of contacts who can help with marketing and strategic management issues.
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