Blockchain VC funding surpasses 2021 total despite declining since May

Blockchain VC funding surpasses 2021 total despite declining since May

It’s been a tough year for cryptocurrencies, and VC activity attests to that. FTX’s collapse in November was the latest and most shocking in a series of shutdowns of significant market players this year, including Celsius, Voyager, and BlockFi, which shook investor confidence and wiped out $1.5 trillion in market cap from the market. Blockchain VC funding has been on a downtrend since May 2022, and November was no different, with an even sharper drop in inflows. However, total capital inflows for 2022 have beaten 2021 by nearly $6 billion.

According to Research, VC funding fell by 4.8% in November to $840.4 million from $843 million in October. Companies, funds, and more show that the number of individual deals fell to 61 in November from 69 in October. It’s not all bad news, though.

Despite declining crypto VC funding since May, the overall amount raised this year was higher than in 2021. With fewer than two weeks remaining in 2022, the VC database of A Research shows a total of $36.1 billion raised. In contrast, $30.3 billion in total funds were introduced in 2021.

Infrastructure projects take half the pot in November.

While the Web3 sector closed most deals in November at 23, the blockchain infrastructure sector held the lion’s share of investor dollars. In November, the industry garnered more than half of the money, receiving $483.9 million in venture finance. The industry got the lion’s share of the funding, with almost half of that sum secured by a company, Matter Labs, the developer behind the Ethereum-compatible zkSync virtual machine announced on November 16, featuring participation from Lightspeed Venture Partners, Variant, and current investor Andreessen Horowitz, which completed a $200 million Series C fundraising round co-led by Blockchain Capital and Dragonfly. Including $200 million from BitDAO to support ecosystem projects, the business has now secured $458 million in funding across all rounds.

For a complete analysis of the blockchain VC sector in November, read Cointelegraph Research’s monthly “Investor Insights” report. The research team breaks down the top market-moving events of the past month and key data from different sectors,, including venture capital.

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