2022 Q1 Global Blockchain Investment and Financing Quarterly Report: US financing amount accounted for nearly 44% of total financing, China accounted for 1.91%

Summary

  • Affected by economic policies and geopolitics, the world’s major cryptocurrencies began to rebound after bottoming out. The Federal Reserve and central banks have started to raise interest rates and adjust their balance sheets since the end of 2021, and the conflict between Russia and Ukraine has increased the uncertainty of the global economic market, and the cryptocurrency field has experienced greater volatility in the first quarter.
  • NFTs and the Metaverse are favored by capitalists. The NFT market continues to expand and the ecosystem continues to improve. In China, digital collections are gradually recognized as a new cultural and creative carrier, and have become an important means of institutional brand marketing and external publicity. The Metaverse has attracted the attention of giant companies and various industry organizations. At present, application scenarios combined with industries have emerged, and have driven industries such as virtual digital humans.
  • In the first quarter of 2022, the number of financings in the global blockchain field was 390, with a financing amount of 6.26 billion yuan. The average single financing amount was US$16.0522 million, showing a downward trend as a whole compared to the previous quarter.
  • In terms of financing rounds, the global blockchain field financing is mainly concentrated in seed/angel rounds, strategic investments and A rounds, accounting for more than 70%. In terms of scenarios, on-chain application scenarios, digital asset-related application scenarios, and infrastructure/technical solutions are the most popular investment scenarios in the blockchain field.
  • In the first quarter of 2022, the United States saw the largest number of financings in the blockchain sector, with a total of 122, while Singapore and China ranked second and third with 27 and 24, respectively. In terms of financing amount, the publicly disclosed financing amount in the blockchain field in the United States is 2.754 billion US dollars, accounting for nearly 44% of the total financing in the first quarter. China was $119 million, or 1.91% of the total funding raised in the first quarter.

1. An overview of the global blockchain market in the first quarter

In the first quarter of 2022, the application practice of industrial blockchain is steadily advancing. Many enterprises and institutions have begun or deeply involved in blockchain-related businesses, and regulatory authorities have paid more and more attention. According to incomplete statistics from 01 Blockchain and Zero One Think Tank, there will be 74 blockchain-related policies in the first quarter of 2022.

The first quarter of the cryptocurrency sector saw a lot of volatility. The Federal Reserve and central banks have begun to raise interest rates and adjust their balance sheets since the end of 2021, and the tightening monetary policies of major economies have brought negative sentiment to the crypto market. In addition, the conflict between Russia and Ukraine has increased the uncertainty of the global economic market, and the prices of major cryptocurrencies in the world have been depressed. Later, after the monetary policy and geopolitical situation was relatively stable, the cryptocurrency began to rebound after bottoming out.

NFTs are still the favored track for capitalists. Although the transaction volume has cooled since January, the number of transactions on networks such as Flow, Polygon and Solana has increased significantly. The NFT market is still expanding and the ecosystem is still improving. In China, since the beginning of spring, digital collections have gradually been recognized as a new cultural and creative carrier, and have become an important means of institutional brand marketing and external publicity. Judging from the popularity of digital collections, consumers are increasingly accepting digital collections as a new collection method.

Following NFTs, the Metaverse track is on the rise. As an emerging track, Metaverse has attracted the attention of giant companies and various industry organizations. At present, the Metaverse has begun to integrate with the industry, and application scenarios have emerged in the fields of social networking, tourism, and games. In addition, as an industry under the concept of Metaverse, virtual digital human is also ushering in accelerated development.

Under the positive situation of the overall industry, in order to analyze the specific investment and financing situation of the global blockchain-related industries in Q1 2022, the 01 blockchain differs from the amount of financing, financing rounds, field distribution, industry distribution and investment institutions. A comparative analysis of the dimensions was carried out in order to show the whole picture of the investment and financing of the blockchain industry.

2. The overall overview of investment and financing in the global blockchain field in the first quarter

(1) The number of financings in the first quarter was 390, and the average single financing amount was mostly in the tens of millions of dollars.

According to incomplete statistics from 01 Blockchain and Zero One Think Tank, from 2021 to the first quarter of 2022, a total of 2,202 financings occurred in the global blockchain field, and the publicly disclosed financing amount reached 54.944 billion US dollars. Among them, the number of financings in the global blockchain field in a single quarter is in the range of 400-500. In Q1 2022, the number of financings in the global blockchain field will be 390, and the financing amount will be US$6.26 billion. The overall popularity is lower than the previous period.

Figure 1. The number and amount of financing in the blockchain field in Q1 from 2021 to 2022

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Data source: 01 Blockchain, Zero One Think Tank

Observing the specific financing situation in each month of Q1 in 2022, it can be seen that the number of financing in Q1 in 2022 will increase month by month, and the financing amount will show an “inverted V shape”. In March, there were 141 financings in the blockchain field, with a financing amount of 1.79 billion US dollars, accounting for 36% and 28.59% of the number and amount of financing in the first quarter, respectively.

Figure 2. The number and amount of financing in the global blockchain field in Q1 2022

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Data source: 01 Blockchain, Zero One Think Tank

Judging from the average single financing amount, the single financing in the Q1 blockchain field in 2021-2022 is mostly in the tens of millions of dollars. Among them, the average single financing amount in Q3 in 2021 is the highest, at $41.697 million. In the following two quarters, the average single financing amount decreased, and in Q1 2022, this value was $16.0522 million.

Figure 3. The average single financing amount in the blockchain field in Q1 from 2021 to 2022 (unit: ten thousand US dollars)

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Data source: 01 Blockchain, Zero One Think Tank

Judging from the average single financing amount in each month of Q1 in 2022, the average single financing amount in February was the highest, reaching US$21.252 million, and the average single financing amount in March decreased to US$12.695 million, which is the average of Q1. The month with the lowest single financing amount.

Figure 4. The average single financing amount in the blockchain field in Q1 in 2022 (unit: ten thousand US dollars)

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Data source: 01 Blockchain, Zero One Think Tank

Note: Average single financing amount = publicly disclosed financing amount / number of projects with publicly disclosed financing amount

(2) In addition to strategic investment, Q1 financing is mainly concentrated in the A round and before the A round

In Q1 of 2022, the financing in the global blockchain field is mainly concentrated in seed/angel rounds, strategic investments and A rounds, with 152, 49 and 43 deals, accounting for 44%, 14% and 13% respectively. In addition, mergers and acquisitions (24 deals), B rounds (20 deals) and ICOs (18 deals) also accounted for a certain proportion.

Figure 5. Distribution of global blockchain financing rounds in Q1 2022 (by number of financings)

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Data source: 01 Blockchain, Zero One Think Tank

Looking at the amount of funding disclosed in various forms, in the first quarter of 2022, both ICOs and Series C rounds totaled more than $1 billion. The financing amount of the A round, B round and seed/angel round all accounted for more than 10%, and the strategic investment was about 44,000 US dollars, accounting for 8%.

Figure 6. Distribution of global blockchain financing rounds in Q1 2022 (by financing amount, unit: ten thousand US dollars)

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Data source: 01 Blockchain, Zero One Think Tank

(3) Digital asset-related and on-chain application scenarios are most favored by capital parties

Referring to the blockchain industry classification standards of many institutions such as the Tongzhengtong Research Institute and the Information Center of the Ministry of Industry and Information Technology of China, combined with the experience of 01 blockchain, we divide the blockchain industry into the bottom layer of the blockchain and the infrastructure (bottom layer), Expansion technologies and solutions (expansion layer/data layer) and industry applications (application layer) are divided into three categories based on this, which are subdivided into infrastructure/technology/solutions, digital asset-related application scenarios, financial application scenarios, entities There are more than 10 second-level categories such as economic application scenarios and on-chain application scenarios, and the major categories are subdivided into more than 100 third-level categories.

In terms of the distribution of financing in the secondary industry, on-chain application scenarios, digital asset-related application scenarios, and infrastructure/technical solutions are the most popular investment scenarios in the blockchain field, while blockchain technology is used in real economy and financial application scenarios The landing ability needs to be improved.

On-chain application scenarios have the largest number of financings, with 141 deals, accounting for 36.15%; digital asset-related application scenarios ranked second with 132 deals, accounting for 33.84%, followed by infrastructure/technical solutions, with 72 deals , accounting for 18.46%. In addition, real economy application scenarios and financial application scenarios accounted for 7.94% and 3.58% respectively.

Figure 7. Distribution of the amount of financing in the secondary industry in the blockchain field in Q1 2022

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Data source: 01 Blockchain, Zero One Think Tank

From the perspective of the three-level industry classification, new fields such as games, DeFi, NFT, and Metaverse have gained the attention and layout of many large institutions, and are also the most popular tracks for capitalists. In the first quarter, there were 52, 48, 42, and 29 financings for such on-chain application scenarios, respectively, accounting for 43.84% of the total financing.

Figure 8. The distribution of three-tier industry financing in the blockchain field in Q1 in 2022 (TOP25)

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Data source: 01 Blockchain, Zero One Think Tank

In terms of financing amount, in Q1 2022, the financing amount of on-chain application scenarios is far ahead, reaching US$2.404 billion, accounting for 38% of the total industry financing. The financing amount of digital asset-related application scenarios ranked second, with 2.157 billion US dollars, accounting for 34%. Infrastructure/Technology Solutions ranked third with $1.232 billion, accounting for 20%.

Figure 9. Distribution of financing amount in secondary industries in the blockchain field in Q1 2022

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Data source: 01 Blockchain, Zero One Think Tank

From the perspective of the financing amount of the tertiary industry, DAO and DeFi-related financing financing are relatively high, accounting for 17.25% and 11.12% of the financing amount in the blockchain industry, respectively. On-chain application scenarios such as NFT, games and Metaverse also performed well. In terms of infrastructure/technical solutions, privacy computing, data, storage and web3.0 are also popular investment tracks.

Figure 10. The distribution of financing amount in the third-level industry in the blockchain field in Q1 2022 (TOP25) (unit: ten thousand US dollars)

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Data source: 01 Blockchain, Zero One Think Tank

(IV) Over ten financing events with a single amount exceeding 100 million

The Luna Foundation Guard (LFG) is a non-profit organization to help develop the Terra ecosystem. It was revealed that it was building a decentralized foreign exchange reserve to protect the peg of UST to the U.S. dollar. To that end, on February 22, 2022, the foundation hosted one of the largest private token sales events in the crypto world, raising $1 billion from several venture capital firms. This is also the largest single financing event in the first quarter of 2022.

In addition, the financing events with a single financing amount exceeding 100 million also include the following companies, cryptocurrency derivatives exchange FTX, NFT trading platform OpenSea, zero-knowledge privacy application platform Aleo, global encrypted financial intelligence service provider Amber Group, blockchain Aptos, a public chain project, Genesis, a financial market software company, Helium, a decentralized wireless infrastructure provider, Immutable, a blockchain-based e-sports game developer, CoinTracker, a crypto investment management platform, and FanCraze, a cricket NFT platform.

Table 1. Top 15 Financing Amounts in the Blockchain Field in the First Quarter of 2022

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Data source: 01 Blockchain, Zero One Think Tank

3. Regional distribution of global blockchain financing in the first quarter

(1) Regional distribution of financing in the global blockchain field

In Q1 of 2022, the United States will have the largest number of financings in the blockchain field, with a total of 122 transactions, accounting for 31.28% of the total financing in the first quarter; Singapore and China have similar financing numbers, ranking second and third respectively. A total of 27 financings occurred in Singapore, accounting for 6.92%; a total of 24 financings occurred in China, accounting for 6.15%.

In terms of financing amount, the publicly disclosed financing amount in China’s blockchain field is only about 4.34% of that in the United States, and the United States is 2.754 billion US dollars, accounting for nearly 44% of the total financing amount in the first quarter; Singapore ranked second in the world in terms of financing amount, but The financing amount was US$378 million, accounting for 6% of the total financing in the first quarter; China was US$119 million, accounting for 1.91% of the total financing in the first quarter.

Figure 11. TOP15 ranking of global blockchain financing regions

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Data source: 01 Blockchain, Zero One Think Tank

(2) Investment and financing in the blockchain sector in the United States in the first quarter

From the specific financing situation of each month in the United States in Q1 2022, it can be seen that the number of Q1 financing in the United States remains at about 40 per month. The difference in the amount of financing is small, of which the financing amount in February was the largest, about US$2.724 billion, accounting for 35% of the financing amount in the first quarter.

Figure 12. The number and amount of financing in the US blockchain field in 2021Q1

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Data source: 01 Blockchain, Zero One Think Tank

In Q1 2022, the distribution of financing rounds in the US blockchain field is roughly the same as that in the global blockchain field, and the financing rounds are mainly concentrated in the A round and before the A round. Among them, the number of seed/angel financing is the largest, accounting for 29% of the total financing, followed by A round and strategic investment, accounting for 16%; mergers and acquisitions and C rounds also account for a certain proportion, accounting for 8% and 4% respectively.

Figure 13. 2022Q1 Distribution of Financing Rounds in the U.S. Blockchain Field (Classified by Number of Financing)

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Data source: 01 Blockchain, Zero One Think Tank

Judging from the disclosed financing amount, in Q1 2022, the US round A and subsequent rounds will account for a larger proportion. Among them, the C round financing amount is the highest, at 700 million US dollars, followed by A round, B round and strategic investment, respectively, 449 million US dollars, 422 million US dollars and 269 million US dollars. In addition, the D round, seed/angel and IPO also accounted for 5% or more of the total financing amount, respectively.

Figure 14. Distribution of financing rounds in the US blockchain field in Q1 2022 (by financing amount, unit: USD 10,000)

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Data source: 01 Blockchain, Zero One Think Tank

From the perspective of the number of financing in the secondary industry, digital asset-related application scenarios, infrastructure/technical solutions and on-chain application scenarios are the most popular investment scenarios in the US blockchain field, with 45, 29 and 28 respectively. The three accounted for 83%. In addition, 17 and 3 transactions occurred in real economy application scenarios and financial application scenarios respectively.

Figure 15. 2022 Q1 Distribution of Financing in Secondary Industries in the U.S. Blockchain Field

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Data source: 01 Blockchain, Zero One Think Tank

Similar to the distribution of financing in the secondary industry, in the distribution of financing amount in the secondary industry in the blockchain field in the United States, digital asset-related application scenarios, infrastructure/technological solutions and on-chain application scenarios account for the majority of the total industry financing. The amounts were 1.056 billion, 930 million and 592 million US dollars, accounting for 38.34%, 33.77% and 21.49% respectively.

Figure 16. 2022Q1 Distribution of Financing Amounts in Secondary Industries in the U.S. Blockchain Field

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Data source: 01 Blockchain, Zero One Think Tank

(3) Investment and financing of China’s blockchain field in the first quarter

In Q1 2022, from the specific financing situation of each month in China, the number of financings showed a downward trend. The financing situation in January was the best, with 10 financings, accounting for 45%. In February, although the number of financings decreased, the financing amount was US$234 million, accounting for 61.97%. In March, the number of financings was only half of that in January, but financing financing was still higher than in January.

Figure 17. Quantity and amount of financing in China’s blockchain sector in 2022Q1

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Data source: 01 Blockchain, Zero One Think Tank

In Q1 2021, the financing rounds in China’s blockchain field are mainly distributed in seed/angel rounds, A rounds and strategic investments. Among them, the number of seed/angel round financing is the largest, accounting for 35% of the total financing amount, while the A round and strategic investment account for 22% and 18% respectively; in addition, the B round, B+, C round, Pre-A, Pre-B and Mergers and acquisitions occurred separately.

Figure 18. Distribution of financing rounds in China’s blockchain sector in 2022Q1 (by financing amount)

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Data source: 01 Blockchain, Zero One Think Tank

Judging from the disclosed financing amount, China will have the highest financing amount in Q1, B+ and B rounds in 2022, with US$200 million and US$88 million, respectively. In the B+ round of financing, on February 22, 2022, the encrypted financial service provider Amber Group received US$200 million in financing, led by Temasek, and existing investors such as Sequoia China, Pantera Capital, Tiger Global Management, Tru Arrow Partners and Coinbase Ventures Shareholder participation, etc. This financing is also the project with the highest single amount in Q1 in China.

Figure 19. Distribution of financing rounds in China’s blockchain field in 2022Q1 (by financing amount, unit: ten thousand US dollars)

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Data source: 01 Blockchain, Zero One Think Tank

From the perspective of the number of financing in the secondary industry, on-chain application scenarios and digital asset-related application scenarios are the most popular investment scenarios in China’s blockchain field, with 13 and 6 respectively. Real economy application scenarios accounted for 54%; digital asset-related application scenarios accounted for 25%. 2 transactions, 2 transactions and 1 transaction occurred in infrastructure/technical solutions, financial application scenarios and real economy application scenarios, respectively.

Figure 20. 2022Q1 Distribution of Financing Quantity in Secondary Industries in China’s Blockchain Field

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Data source: 01 Blockchain, Zero One Think Tank

From the perspective of the distribution of financing amount in the secondary industry in China’s blockchain field, the financing amount of digital asset-related application scenarios is the highest, reaching 322 million US dollars, accounting for 85% of the total industry financing. The second is the application scenario on the chain, which is 39.7414 million US dollars, accounting for 10%.

Figure 21. 2021Q1 Distribution of Financing Amount of Secondary Industries in China’s Blockchain Field

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Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/2022-q1-global-blockchain-investment-and-financing-quarterly-report-us-financing-amount-accounted-for-nearly-44-of-total-financing-china-accounted-for-1-91/
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