Business

Cointelegraph Research launches venture capital database

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.

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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.