Home News Venture Capital Crypto Funds See 26% Decline in First Half of 2022

Venture Capital Crypto Funds See 26% Decline in First Half of 2022

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New data from Crunchbase shows that crypto firms only saw $9.3 billion worth of venture capital (VC) investments in the first half of the year 2022.  This represents a 26% fall from last year’s $12.5 billion at around the same time. However, the report also indicates that there was an increase in the number of investment deals.

Crypto seeing less venture capital fund

This does not exactly come as a surprise. At the moment, there’s hardly anything left in the crypto space that is not experiencing a fall one way or another. From crashing crypto prices to the collapse of the terraUSD stable coin and firms getting bankrupt. It is only expected that venture capital firms may not want to commit as much in the sector.

Interestingly, however, the number of investment deals is actually on the rise. As opposed to last year’s 456 deals in the first six months, 2022 has seen 534 deals so far. This goes to show that while the deals are more, the investment funds are not as they should be.

Common scenario

Meanwhile, the decline in venture capital investments is not peculiar to the crypto space. There is a similar situation across the board in several industries as a result of the global economic state. As GlobalData reports, overall VC deals in the U.S. dwindled to $123.1 billion by the end of the first half of the year. This represents a 22% fall compared to the same period last year.

However, overall, crypto investments are finding it tougher considering the booming state the industry was in last year.  Nonetheless, there seems to be an unwavering hope that the difficult times will pass. Especially considering how venture capital firms seem bent on investing no matter how small. 

To put this in perspective, Andreessen Horowitz (a16z) still launched a whopping $4.5 billion crypto fund in May.

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