Blockchain VC funding total surpasses 2021 despite decline since May
It’s been a tough year for crypto, and venture capital activity bears that out. The collapse of FTX in November was the latest and most shocking in a series of shutdowns by key market players this year – including Celsius, Voyager and BlockFi – that have shaken investor sentiment and wiped $1.5 trillion in market capitalization from cryptocurrency.
Blockchain venture capital funding has been on a downward slope since May 2022, and November was no different, with inflows falling further. However, total capital inflows for 2022 have surpassed 2021 by nearly $6 billion.
According to Cointelegraph Research, VC funding fell 4.8% in November, totaling $840.4 million – down from $843 million in October. Cointelegraph Research Terminal’s venture capital database – which contains extensive details on deals, M&A activity, investors, crypto companies, funds and more – shows that the number of individual deals fell from 69 in October to 61 in November.
Download and buy the latest report on Cointelegraph Research Terminal.
It’s not all bad news, though. Despite a decline in crypto VC funding since May, total funding for the year has surpassed the figure for 2021. Cointelegraph Research’s VC database shows that a total of $36.1 billion has been raised in 2022, with less than two weeks left in the year. In contrast, the total funds raised in 2021 were $30.3 billion.
Infrastructure projects take half the pot in November
While the Web3 sector saw the most deals closed in November at 23, the blockchain infrastructure sector had the largest share of investors’ dollars. The sector attracted over half of the funding in November, securing $483.9 million in venture capital.
Although the infrastructure sector took the lion’s share of funding, almost half of the amount raised was secured by one company, Matter Labs. The developer behind the Ethereum Virtual Machine compatible zkSync announced on November 16 that it closed a $200 million Series C funding round led by Blockchain Capital and Dragonfly, with participation from Lightspeed Venture Partners, Variant and existing investor Andreessen Horowitz. The company has now raised $458 million in funding across all rounds, including $200 million from BitDAO to fund ecosystem projects.
For a full analysis of the blockchain VC sector in November, check out the monthly “Investor Insights” report from Cointelegraph Research. The research team breaks down the past month’s most important market-moving events and the most critical data across the various sectors of the industry, including venture capital.
The opinions expressed in this article are for general information purposes only and are not intended to provide specific advice or recommendations for any individual or about any specific security or investment product.
