Venture Capital Retreats from Crypto in Q3, But It’s Not All Dark: Report

In 2022, it should come as no surprise that most assets are in a bear market. People look for different signals when deciding when is the right time to enter the market. Cointelegraph Research’s second-quarter venture capital report said VC inflows were stagnant at just over $14 billion, the same as in the previous quarter and the first quarter.

However, Q3 did not fare as well, as Cointelegraph Research examines in its latest Q3 venture capital report. The number of deals also fell to 338 for the full quarter compared to 621 in the second quarter. While this may paint a bleak picture for the blockchain industry, many positive signs are still evident after analyzing all the data.

Download the full report complete with charts and infographics here.

Cointelegraph Research Terminal’s venture capital database contains comprehensive details on deals, mergers and acquisitions activities, investors, cryptocurrency companies, funds, and more. The team analyzes this data to discover the trends that matter most in the industry. This latest report provides a quick overview of last quarter’s highlights. Not everything fits in a 12-page quarterly report.

Possibility of bottom forming?

Looking at the quarterly charts, we can see that in Q3, capital inflows dropped significantly from over $14.6 billion in Q2 to just $4.98 billion in Q3. However, as Cointelegraph Research outlined in its latest Investor Insights report, VC interest in September increased by 20.6%, up from his 2022 low in August of $1.36 billion. In September he rose to $1.64 billion.

No single data point will shape a trend, but Peter Thiel-backed Valar Ventures’ $665M fund, Multicoin Capital’s $430M fund, and Headline’s three new fund launches and other activities focused on building blockchain companies and promoting Web3. Funds totaling over $900 million. Come to think of it, what exactly is Web3?

The second quarter venture capital report highlighted that Decentralized Finance (DeFi) is no longer a primary area of ​​interest for VCs as they move to Web3. This trend continues into Q3, but it raises questions: What is Web3 made of? The venture capital database divides the sector into subcategories, and the third quarter venture capital report provides an analysis of this data. The results are interesting, to say the least. For more information, check out this report.

Cointelegraph Research Team

Cointelegraph’s research department has some of the best talent in the blockchain industry. Our team of researchers combines academic rigor and filters through practical, hard-earned experience to deliver the most accurate and insightful content available on the market.

Dr. Demelza Hayes is the Research Director at Cointelegraph. Hays has assembled a team of experts from the fields of finance, economics and technology to bring the best source of industry reports and insightful analysis to the market. The team draws on APIs from various sources to provide accurate and useful information and analytics.

Combining decades of experience in traditional finance, business, engineering, technology, and research, Cointelegraph’s research team is well-positioned to put their combined talents to good use in venture capital reporting.

The opinions expressed in this article are for general informational purposes only and are not intended to provide specific advice or recommendations regarding any person or any particular security or investment product.