Venture capital recedes from crypto in Q3, but not all is bleak: Report


In 2022, it’s no surprise that most assets are in a bear market. People have a variety of signals they look for when determining a good time to enter the market, and Cointelegraph Research’s Venture Capital Report for Q2 revealed that VC inflows stagnated at just above $14 billion last quarter, the same as Q1.

However, the third quarter did not fare as well, dropping over 66% to just $4.98 billion, as Cointelegraph Research explores in its latest Venture Capital Report for Q3. The number of deals also declined to 338 for the entire quarter, compared with Q2’s 621. While that might paint a bleak picture for the blockchain industry, there are still many positive signs apparent after analyzing all the data.

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

The Cointelegraph Research Terminal’s Venture Capital Database contains comprehensive details on deals, mergers and acquisition activity, investors, crypto companies, funds, and more. The team analyzes this data to discover the most important trends in the industry, and this latest report offers a brief overview of the highlights of the last quarter — not everything can fit into the 12-page quarterly report.

Potential bottom forming?

When looking at the charts on a per-quarter basis, Q3 shows a massive decline from over $14.6 billion in capital inflows in Q2 to just $4.98 billion in Q3. But as Cointelegraph Research outlined in its most recent Investor Insights report, September saw a 20.6% increase in VC interest, rising from a 2022 low of $1.36 billion in August to $1.64 billion in September.

While one data point does not make a trend, there were other activities focused on building blockchain companies and promoting Web3, such as the launching of funds like Peter Thiel-backed Valar Ventures’ $665 million fund, Multicoin Capital’s $430 million fund and Headline’s three new funds that have a combined value of over $900 million. Speaking of which, what exactly is Web3?

The Q2 Venture Capital Report highlighted that decentralized finance (DeFi) was no longer the leading sector of interest for VC, as it had shifted to Web3. This trend has continued through Q3, but that begs the question: What does Web3 consist of? The Venture Capital Database breaks down the sector into subcategories, and the Q3 Venture Capital Report offers an analysis of this data. The results are interesting, to say the least. To learn more, read the report here.

The Cointelegraph Research team

Cointelegraph’s Research department comprises some of the best talents in the blockchain industry. Bringing together academic rigor and filtered through practical, hard-won experience, the researchers on the team are committed to bringing the most accurate, insightful content available on the market.

Demelza Hays, Ph.D., is the director of research at Cointelegraph. Hays has compiled a team of subject matter experts from across the fields of finance, economics and technology to bring to the market the premier source for industry reports and insightful analysis. The team utilizes APIs from a variety of sources in order to provide accurate, useful information and analyses.

With decades of combined experience in traditional finance, business, engineering, technology and research, the Cointelegraph Research team is perfectly positioned to put its combined talents to proper use with its Venture Capital Report.

The opinions expressed in this article are for general informational purposes only and are not intended to provide specific advice or recommendations for any individual or on any specific security or investment product.