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Blockchain VC Funding Exceeds 2021 Total Despite Declining Since May

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It’s been a tough year for cryptocurrency, and the venture capital activity underscores that. The collapse of FTX in November was the latest and most shocking in a series of shutdowns of major market players this year — including Celsius, Voyager and BlockFi — that have shaken investor sentiment and wiped $1.5 trillion in market cap from the cryptocurrency space.

Blockchain venture capital funding has been on a downward slope since May 2022, and November was no different, with inflows declining even further. However, total capital inflows for 2022 exceeded 2021 by nearly $6 billion.

to me Cointelegraph ResearchVenture capital financing fell 4.8% in November, to $840.4 million — down from $843 million in October. Cointelegraph Research Station Venture capital database — which contains comprehensive breakdowns of deals, mergers, acquisition 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 purchase the latest report on the Cointelegraph Research Terminal.

However, not all news is bad. Despite a slowdown in cryptocurrency VC funding since May, this year’s total funding has surpassed the figure for 2021. Cointelegraph Research’s VC database shows that a total of $36.1 billion was raised in 2022, with less than two weeks left of the year. In contrast, the total money raised in 2021 was $30.3 billion.

Infrastructure projects take half as much in November

While the Web3 sector saw the most deals close in November at 23, the blockchain infrastructure sector captured the largest share of investors’ dollars. The sector attracted more than half of the funding in November, raising $483.9 million in venture capital.

Although the infrastructure sector received the lion’s share of funding, nearly half of that amount was secured by a single company, Matter Labs. The developer behind zkSync, which is compatible with the Ethereum Virtual Machine, announced on November 16 that it Closed a $200 million Series C funding round Co-led by Blockchain Capital and Dragonfly, with participation from Lightspeed Venture Partners, Variant and current investor Andreessen Horowitz. The company has now raised $458 million in funding across all rounds, including $200 million from BitDAO to fund ecosystem projects.