2022 Q1 venture capital activity in crypto set to outpace 2021

The first quarter of 2022 saw unprecedented growth in terms of venture-capital (VC) activity in different blockchain sectors. In 2021, VCs poured in over $30 billion into infrastructure, nonfungible tokens (NFTs), decentralized finance (DeFi), centralized finance (CeFi) and Web3. That set the bar pretty high if 2022 was going to beat it. In the first quarter of 2022, capital inflows from VCs were over $14.6 billion, or around 48% of all the capital investment by VCs last year. 

Over 500 individual deals were struck in the first three months throughout the five major sectors listed above in 2022. Cointelegraph Research studied and analyzed its database of deals, mergers and acquisitions (M&A) activity, investors and crypto companies to produce a 12-page report on the major VC activities in the crypto sphere.

Leaving 2021 behind

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

It takes more than just great technology to have people use a product. History is filled with great products that just did not have the right mix of marketing, management or capital to bring a product successfully to market.

VCs aim to resolve these issues by investing more than just the capital needed to get a project off the ground but also provide a network of contacts that can provide solutions to the correct marketing and strategic management mix.

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

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

Record-breaking number and value of deals

The first quarter of 2022 saw an unprecedented amount of capital inflows in the blockchain industry. Since the start of 2021, each quarter has continuously increased the total capital invested in this space, culminating in the 2022 Q1 that ushered in over $14.6 billion in VC investment. The average United States dollar value of each deal has also increased and now stands around $32.3 million for the last three months.

The number of individual deals is also rising and broke the previous record, reaching over 500 in 2022 Q1. The increase is likely to continue to trend higher as the space is attracting new funds from Bain Capital and Sequoia Capital, long-time VCs in traditional markets. The industry also saw consolidation through acquisitions by long-time crypto players like OpenSea, Coinbase, Fireblocks, FTX and Blockchain.com. In all cases, these strategic purchases expand the reach of each of the firms’ core business offerings.