Venture capital firms have invested $14.2 billion in various cryptocurrency projects in the first half of 2022. This figure was 149% higher than for the entire 2020 and represents nearly half of the 2021 annual investments.
According to a report by KPMG, the investment performance of the crypto sector remains strong despite the market downturn. In the first half of 2022, venture capitalists invested about $14.2 billion in various crypto projects.
For example, from January to June 2022, venture capitalists made 725 financial deals, a 10% increase over the entire 2020 or 2019 period. And while investment flows fell in Q2 2022, this year’s total remains at a high level.
In 2021, investors poured $32.1 billion into the crypto market through 1,583 deals, meaning that one deal cost investors an average of $20.3 million last year. The same figure for this year is $19.6 million. So global venture capitalists’ interest in the crypto market hasn’t declined amid the crypto winter, which underlines the space’s growing maturity and diversity of technology solutions that attract investments.
KPMG analysts concluded that despite the fairly high interest of venture capitalists in the market, investment flows into crypto projects will still slow down during the rest of 2022. According to the conclusions, an upcoming potential recession, rising inflation and interest rates and the consequences of the Russian-Ukrainian conflict, will lead to a drop in investment this year.
Alexandre Stachtchenko, KPMG France Director of Blockchain and Crypto-Assets, specifies that the main focus of investors in the coming half-year will be “the use of blockchain in modernizing the financial market.”
Public companies have invested more than $6 billion in the crypto sector in ten months, 25% of which was invested by Google.
