Despite the generally negative price action across the crypto industry, continued venture capital investments in the space suggest the industry is healthy and evolving. Cointelegraph Research’s new venture capital database tracks the activity of VC firms and gives users access to the key roadmaps for innovation and early-stage activity.
Macroeconomic factors have strangled the crypto economy in recent weeks, fueling fears of a prolonged downturn. Crypto prices went into freefall after the US Federal Reserve announced it would hike interest rates by 50 basis points. Then, on May 9, a black swan event impacted the Terra ecosystem and wider space as the algorithmic stablecoin TerraUSD (UST) lost its one-to-one peg to the US dollar.
Nevertheless, VC investments in the industry appear to be going on undisturbed. So far in the second quarter of 2022, $6.8 billion in venture capital investments have been made. This number may remain on track to keep up with the previous quarter’s uptrend.
However, this should not be taken as an indicator of an imminent crypto market recovery. VC investments and returns have historically shown extraordinarily weak correlations with both crypto and traditional assets. Depending on the funding phase, it can take years for companies receiving investments to break even, despite the inflated annual returns blockchain venture capitalists have been posting lately.
VC investors have a long-term perspective when funding a project, and private equity investments do not have a large impact on the price movements of publicly traded assets. Instead, the activity of VC players should be viewed as a long-term indicator of the level of innovation in the space. Continued investments in startups working on Web3, decentralized finance (DeFi), infrastructure and non-fungible tokens (NFTs) prove that the blockchain industry is still a young, dynamic space – one that is rapidly evolving, to adapt to technical challenges.
Cointelegraph Research has compiled an industry-leading database documenting this development. It tracks all publicly announced VC funding rounds and contains over 5,000 records of blockchain venture capital deals made over the past 10 years.
Buy the VC Database on the Cointelegraph Research Terminal
This data not only provides valuable insights into the degree of innovation and the future potential of the area, but also gives early indications of potential investment projects. VC investors have a flair for promising technology and are known for spotting promising projects well in advance. Their coin is pumping and hitting the mainstream news.
Occasional triple-digit annualized returns are solid evidence of this. Visit the Cointelegraph Research Terminal to start exploring private equity darlings and leverage our extensive deal database. The VC Database is available to preview and buy alongside the latest industry reports on DeFi, NFTs, GameFi, Mining and more.
Notable VC deals so far this quarter include Indian crypto trading platform CoinDCX, which raised $135 million in a Series D funding round, with significant contributions from Pantera Capital and Steadview.
Stablecoin issuer Circle, which backs USD Coin (USDC), closed a $400 million round after partnering with big names in traditional finance. In late April, Near Protocol — an emerging carbon-neutral smart contract blockchain that integrates with Ethereum, Polkadot, and Cosmos — raised $350 million for its ecosystem. There is no strong sign of VC activity slowing down, suggesting that the crypto space may not be in for an innovation winter despite the current price uncertainty.
This article is for informational purposes only and does not constitute investment advice, investment analysis or a solicitation to buy or sell any financial instrument. In particular, the document does not serve as a substitute for individual investment or other advice.
https://cointelegraph.com/news/cointelegraph-research-launches-venture-capital-database Cointelegraph Research launches venture capital database