Business

1Q 2022 venture capital activity in crypto will surpass 2021

The first quarter of 2022 saw unprecedented growth in terms of venture capital (VC) activity across various blockchain sectors. In 2021, VCs invested over $30 billion in infrastructure, non-fungible tokens (NFTs), decentralized finance (DeFi), centralized finance (CeFi) and Web3. That set the bar pretty high if 2022 should surpass it. In the first quarter of 2022, VC capital inflows totaled over $14.6 billion, or roughly 48% of all VC capital investments last year.

In the first three months, over 500 individual transactions were completed in the five main sectors listed above in 2022. Cointelegraph Research examined and analyzed its database of transactions, mergers and acquisitions (M&A), investors, and crypto companies to create a 12-page report on the major crypto VC activity.

Leave 2021 behind

Anyone interested in cryptocurrencies, blockchain and the future of this industry should pay close attention to the contents of this report. By examining what the VCs are doing and knowing the players investing in projects and which platforms are investing in, individuals can help stay on top and make informed decisions.

It takes more than great technology to get people using a product. History is full of great products that just didn’t have the right mix of marketing, management, or capital to successfully bring a product to market.

VCs aim to solve these problems by investing more than just the capital needed to get a project off the ground, but also providing a network of contacts that can provide solutions for proper marketing and strategic management -Mix can offer.

Download the full report with charts and infographics here.

Cointelegraph Research Terminal, along with Keychain Ventures, brings you a report that dives into the first three months of 2022. Cointelegraph Research’s 12-page report analyzes the most active investors, M&A, largest deals and new funds in Q1 2022.

Record-breaking number and value of deals

The first quarter of 2022 saw an unprecedented amount of capital inflows into the blockchain industry. Since the beginning of 2021, each quarter has consistently increased the total capital invested in this space, culminating in the first quarter of 2022, which initiated over $14.6 billion in VC investments. The average US dollar value of each deal has also increased and is now around US$32.3 million over the past three months.

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The number of individual deals is also increasing, breaking the previous record and hitting over 500 in Q1 2022. The increase is likely to trend higher as the space attracts new funding from Bain Capital and Sequoia Capital, longtime VCs in traditional markets. The industry has also seen consolidation from acquisitions by longtime crypto players such as OpenSea, Coinbase, Fireblocks, FTX and Blockchain.com. In all cases, these strategic purchases extend the reach of the companies’ core business offerings.