Blockchain venture capital funding fell to a 12-month low in August

by · September 22, 2022

Data from Cointelegraph Research reveals that in August 2022, the blockchain industry saw $1.36 billion in venture capital invested in the blockchain industry – a 12-month low and the fourth consecutive monthly decline in capital inflows. August’s inflows represent a 31.3% drop from July’s $1.98 billion, and the 101 deals that closed in August had an average capital investment of $14.3 million—down 10.1% from July. The data was obtained from the Cointelegraph Research Terminal’s venture capital database, which contains extensive information on deals, mergers and acquisition activity, investors, crypto companies and funds.

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August 2022 had the lowest capital inflow in 12 months. Source: Cointelegraph Research VC Database

August’s funding focused on Web3, NFTs and infrastructure

August’s three most popular investment categories were Web3, infrastructure and non-fungible tokens (NFT), drawing more than $1.16 billion, or 85.4%, of total capital. Some of the biggest deals include the following: Web3 game developer Limit Break raised $200 million. Barca Studios, FC Barcelona’s Web3 arm, raised $100 million from Chiliz, the owner of blockchain-based fan rewards platform Socios. Ready Player Me, a platform that lets people create metaverse avatars, raised $56 million in a Series B funding round led by Andreessen Horowitz. Inworld AI, a developer platform for creating AI-powered virtual characters, raised $50 million in a Series A round led by Section 32 and Intel Capital.

Sectors of investment interest in August 2022. Source: Cointelegraph Research VC Database

CoinFund is bullish despite market conditions

Venture capital companies have also raised funds. Web3 and crypto-focused venture capital firm CoinFund launched a new $300 million fund to support early-stage startups, underscoring their bullish belief that Web3 will “continue to evolve through all market cycles.” Orange DAO raised $80 million from the Algorand Foundation and Near and looks set to continue growing as an investment-focused decentralized autonomous organization supporting crypto startups. Meanwhile, Shima Capital launched a $200 million debut equity fund to support emerging digital asset companies.

For a full analysis of the blockchain VC sector in August, 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.

Download and buy this report on the Cointelegraph Research Terminal.

This article draws data from Cointelegraph Research Terminals’ expansive venture capital database. This article is for informational purposes only. It does not represent investment advice, investment analysis or an invitation to buy or sell financial instruments. Specifically, it does not act as a substitute for individual investment or other advice.