Cryptocurrency projects attracted ~$20 billion in venture capital investments in the first nine months of 2022.
According to a report from Pitchbook, crypto projects attracted $19.9 billion in venture capital investments from January to November of this year, 41% higher than a year ago.
While the flow of venture capital into crypto startups declined in Q2 this year, the Q3 numbers indicate that the annual totals could surpass last year’s results. Throughout 2021, venture capitalists invested $21.2 billion in crypto startups, so crypto projects will need to raise more than $1.3 billion in Q4 2022 to outperform these numbers.
Pitchbook analysts pointed out that FTX’s collapse reduced confidence in the sector, not only among users, but also among venture capitalists. For example, major investment firms Temasek Holdings and SoftBank Group Corp and venture capital funds Vision Fund and Sequoia Capital cut their investments to zero after FTX filed for bankruptcy. Robert Le, Crypto Analyst at Pitchbook, said the lack of clear crypto regulation is a major factor limiting the flow of venture capital into the sector.
Recall that Web 3.0 startups attracted at least 40% of all VC investments in the crypto market this year.
