Venture capital pulls back from crypto in Q3, but not all is bleak: Report

In 2022, it is no surprise that most assets are in a bear market. People have a number of signals they look for when deciding on a good time to enter the market, and Cointelegraph Research’s Q2 venture capital report revealed that VC inflows stagnated at just over $14 billion last quarter, the same as in 1st quarter.

However, the third quarter didn’t fare as well, falling over 66% to just $4.98 billion, as Cointelegraph Research explores in its latest Q3 venture capital report. The number of deals also fell to 338 for the full quarter, compared to 621 in Q2. Although it may paint a gloomy picture for the blockchain industry, there are still many positive signs after analyzing all the data.

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

Cointelegraph Research Terminal’s venture capital database contains extensive details on deals, M&A activity, investors, crypto companies, funds and more. The team analyzes this data to discover the most important trends in the industry, and this latest report provides a brief overview of the highlights of the last quarter – not everything will fit in the 12-page quarterly report.

Potential bottom formation?

Looking at the charts on a quarterly basis, Q3 shows a massive drop from over $14.6 billion in capital inflows in Q2 to just $4.98 billion in Q3. But as Cointelegraph Research outlined in its latest Investor Insights report, September saw a 20.6% increase in VC interest, rising from a 2022 low of $1.36 billion in August to $1.64 billion in September .

While one data point does not constitute a trend, there were other activities focused on building blockchain companies and promoting Web3, such as the launch of funds such as Peter Thiel-backed Valar Ventures’ $665 million fund, Multicoin Capital’s $430 million fund, and Headlines three new funds that have a total value of over 900 million dollars. Speaking of which, what exactly is Web3?

The Q2 Venture Capital Report highlighted that decentralized finance (DeFi) was no longer the leading sector of interest for VCs, as it had shifted to Web3. This trend has continued through Q3, but it begs the question: What does Web3 consist of? The Venture Capital Database breaks down the sector into subcategories, and the Q3 Venture Capital Report offers an analysis of this data. The results are interesting to say the least. To learn more, read the report here.

The Cointelegraph Research team

Cointelegraph’s research department consists of some of the best talent in the blockchain industry. Bringing together academic rigor and filtered through practical, hard-won experience, the researchers on the team are committed to bringing the most accurate, insightful content available on the market.

Demelza Hays, Ph.D., is the Director of Research at Cointelegraph. Hays has assembled a team of subject matter experts from all areas of finance, economics and technology to bring to market the premier source of industry reports and insightful analysis. The team uses APIs from a variety of sources to provide accurate, useful information and analysis.

With decades of combined experience in traditional finance, business, engineering, technology and research, the Cointelegraph Research team is perfectly positioned to put their combined talents to good use with their venture capital report.

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.