2022 Q1 venture capital activity in crypto set to outpace 2021


The first quarter of 2022 saw unprecedented growth in terms of venture capital (VC) activity across different blockchain sectors. In 2021, VCs invested more than $30 billion in infrastructure, non-fungible tokens (NFTs), decentralized finance (DeFi), centralized finance (CeFi), and Web3. That set the bar pretty high if 2022 was going to top it. In the first quarter of 2022, capital inflows from venture capitalists exceeded $14.6 billion, or about 48% of all capital investment made by venture capitalists last year.

More than 500 individual deals were closed in the first three months in the top five sectors listed above in 2022. Cointelegraph Research studied and analyzed its database of crypto deals, mergers and acquisitions (M&A), investor and company activities to produce a 12 page report. about the main activities of VC in the crypto sphere.

Leaving 2021 behind

Anyone interested in cryptocurrencies, blockchain, and the future of this industry should pay close attention to the content of this report. By studying what VCs are doing and learning about the players who are investing in projects and what platforms they are investing in, people can help stay on top and make informed decisions.

It takes more than great technology to get people to use a product. History is littered with great products that simply didn’t have the right mix of marketing, management, or capital to successfully bring a product to market.

Venture capitalists aim to solve these problems by investing more than the capital needed to get a project off the ground, but they also provide a network of contacts who can provide solutions for the right mix of marketing and strategic management.

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

Cointelegraph Research Terminal, in conjunction with Keychain Ventures, brings you a report that dives into the first three months of 2022. Cointelegraph Research’s 12-page report looks at the most active investors, mergers and acquisitions, biggest deals, and new funds in the first quarter of 2022.

Record number and value of deals

The first quarter of 2022 saw an unprecedented amount of capital inflows into the blockchain industry. Since the start of 2021, each quarter has continuously increased the total capital invested in this space, culminating in the first quarter of 2022 ushering in more than $14.6 billion in venture capital investment. The average US dollar value of each deal has also increased and is now around $32.3 million in the last three months.

The number of individual transactions is also on the rise and broke the previous record, reaching more than 500 in the first quarter of 2022. The increase is likely to continue to trend upwards as the space is attracting new funding from Bain Capital and Sequoia Capital, a long-standing VC in traditional markets. The industry also saw consolidation through acquisitions by long-standing crypto players like OpenSea, Coinbase, Fireblocks, FTX, and Blockchain.com. In all cases, these strategic purchases expand the reach of each of the companies’ core business offerings.