RateCaptain
  • FX Rates
  • Money Market
  • Cryptocurrency
  • Commodities
  • Corporates
  • Contact Us
No Result
View All Result
Subscribe
  • FX Rates
  • Money Market
  • Cryptocurrency
  • Commodities
  • Corporates
  • Contact Us
No Result
View All Result
RateCaptain
No Result
View All Result
Home Cryptocurrency

Venture capital (VC) investment in crypto companies plunged by 26%.

Rate Captain by Rate Captain
July 18, 2022
in Cryptocurrency
Reading Time: 3 mins read
A A
0
Venture capital (VC) investment in crypto companies plunged by 26%.
Share on FacebookShare on TwitterShare on WhatsappShare on Telegram

 

The crypto winter is not descending upon just holders of digital currency—but also those startups looking for funding.Venture capital (VC) investments in crypto companies are down 26% in the first half of the year, compared to the first half of 2021.

AlsoRead

: Crypto Market Sees 32-Month Low in Total Investments as Exchange Volumes Decline.

SEC settles with former Coinbase employee over insider trading charges.

Bitcoin Faces Monthly Loss Amidst Hawkish Fed and Capital Outflow Challenges.

Investments in crypto companies totalled $9.3 billion in the first six months of 2022, down from the record $12.5 billion in the first half of 2021, according to data provided by Crunchbase.

It should come as no surprise that more money went into crypto in the past year as compared to this one. Looking beyond the monumental price drops we have seen, a recent Nairametrics report revealed that 72 of the top 100 crypto’s by market capitalization have lost 90% of their value or more.

VC investments are down practically everywhere as data from Crunchbase reveals that second-quarter funding fell 26% quarter over quarter from $162 billion in the first quarter and 27% year over year from $165 billion in the second quarter of 2021.

The 2022 venture capital market has thus far proven to differ greatly from last year which was record-breaking in almost every way. Data from Crunchbase reveals that the global venture investment last year totalled $643 billion, compared to $335 billion for 2020, a 92% growth year over year. The growth seen represents more than 10x what it was a decade earlier.

Although there is a 26% drop, it does, however, show that VCs are still interested in investing in the industry despite the slew of negative press and monumental price drops the industry has witnessed in the first half of the year 2022. This is because the deal flow actually increased year-over-year from 456 deals to 534 deals. However, the increase in the deal flow also indicates that smaller deal sizes have helped drive the lower overall investments.

Looking closer into the figures, the total investments by VCs in the second quarter totalled more than $4.2 billion, roughly flat when compared to the same period last year and only down $1 billion from the first quarter and well off the record high of $6.1 billion hit in the fourth quarter of last year.

The brazen performance in Q2 comes during a quarter that saw a total of $156 Billion in Total Value Locked (TVL) lost in the DeFi Ecosystem, total exploits in the space amounted to approximately $430 million, the collapse of the Terra blockchain, its native token, now called Luna Classic (LUNC) and its algorithmic stablecoin, now called terraUSD classic (USTC) and liquidity crises faced by crypto lender Celsius and crypto hedge fund Three Arrows Capital.

One of the reasons the first quarter’s numbers were higher was that it saw more large rounds compared to Q2. Six rounds of $400 million or more were announced in the quarter, whereas the second quarter saw only one such round. The round in question was Circle, the company behind the USDC stablecoin, closing a $400 million private equity round from BlackRock, Fidelity Management and Research, Marshall Wace and Fin Capital.

Other big rounds in the second quarter included the Germany-based Trade Republic, which closed a Series C extension worth approximately $250 million in June, Binance US closing a $200 million seed round in April and Unizen raising a $200 million venture round in June.

These funding rounds are especially impressive considering how brutal this year has been to the crypto space. Values for the two largest cryptocurrencies, Bitcoin and Ether, are down more than 70% from their respective November highs. Asides from this, the industry saw one of its stablecoins, which was ranked the third highest by capitalization at peak levels, completely collapse.

Additionally, large lending platforms like Babel Finance and Celsius Network suspended withdrawals and transfers due to market uncertainty and liquidity issues. This has further led Celsius to file for bankruptcy. To top off the quarter, which many are liking to the great depression of 1929, crypto hedge fund Three Arrows Capital (3AC) collapsed after the downturn in digital currencies left it unable to meet obligations. The firm, which managed about $10 billion in assets as recently as March, filed for Chapter 15 bankruptcy protection on July 1. Now, recent reports suggest that its co-founders appear to be on the run from creditors.

Previous Post

Nigeria’s Inflation Rate Surges to 18.6% in June 2022, Highest in 5 Years

Next Post

Fuel Subsidy Removal: Should Nigeria Continue With a Regressive Petrol Subsidy?

Related News

: Crypto Market Sees 32-Month Low in Total Investments as Exchange Volumes Decline.

: Crypto Market Sees 32-Month Low in Total Investments as Exchange Volumes Decline.

by Rate Captain
June 2, 2023
0

The cryptocurrency market has experienced a significant decline in total investments, reaching its lowest point in 32 months during May....

SEC settles with former Coinbase employee over insider trading charges.

SEC settles with former Coinbase employee over insider trading charges.

by Rate Captain
May 31, 2023
0

Former Coinbase product manager Ishan Wahi and his brother Nikhil Wahi have reached a settlement with the U.S. Securities and...

Bitcoin Faces Monthly Loss Amidst Hawkish Fed and Capital Outflow Challenges.

Bitcoin Faces Monthly Loss Amidst Hawkish Fed and Capital Outflow Challenges.

by Rate Captain
May 30, 2023
0

Bitcoin, the leading cryptocurrency, is on track to experience its first monthly loss since December amid renewed uncertainty in the...

Nigeria’s Crypto Future: President Tinubu’s Promises and Potential Pitfalls.

Nigeria’s Crypto Future: President Tinubu’s Promises and Potential Pitfalls.

by Rate Captain
May 30, 2023
0

This new era of governance presents a unique opportunity for Nigeria to explore the vast potential of cryptocurrencies and revolutionize...

Next Post
Fuel Subsidy Removal: Should Nigeria Continue With a Regressive Petrol Subsidy?

Fuel Subsidy Removal: Should Nigeria Continue With a Regressive Petrol Subsidy?

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Recommended

US Nation’s Employers Add 339,000 Jobs in May, Defying Market Expectations.

US Nation’s Employers Add 339,000 Jobs in May, Defying Market Expectations.

June 2, 2023
Ride-hailing Drivers in Nigeria Demand a Price Increase of 200%.

Ride-hailing Drivers in Nigeria Demand a Price Increase of 200%.

June 2, 2023

Popular Story

  • Providus Bank Plc Announces Graduate Management Trainee Program 2023/2024.

    Providus Bank Plc Announces Graduate Management Trainee Program 2023/2024.

    0 shares
    Share 0 Tweet 0
  • Ride-hailing Drivers in Nigeria Demand a Price Increase of 200%.

    0 shares
    Share 0 Tweet 0
  • Telcos issue banks disconnection notice over USSD debt

    0 shares
    Share 0 Tweet 0
  • US Nation’s Employers Add 339,000 Jobs in May, Defying Market Expectations.

    0 shares
    Share 0 Tweet 0
  • Telecom Operators Blame Communications Minister for Telecom Debt Crisis

    0 shares
    Share 0 Tweet 0
RateCaptain

RateCaptain

We bring you the most accurate in new and market data. Check our landing page for details.

  • FX Rates
  • Money Market
  • Cryptocurrency
  • Commodities
  • Corporates
  • Contact Us

Copyright © 2022 RateCaptain - All rights reserved by RateCaptain.

No Result
View All Result
  • FX Rates
  • Money Market
  • Cryptocurrency
  • Commodities
  • Corporates
  • Contact Us

Copyright © 2022 RateCaptain - All rights reserved by RateCaptain.

?>