Cointelegraph Research analyzed all transactions and trends in venture capital (VC) in the blockchain industry in the second quarter of 2022, and the $14.67 billion invested in the blockchain industry in the second quarter was slightly higher than the $14.66 billion in the first quarter. Web3 emerged as the area of greatest interest for crypto VCs, with seven of the ten most active VCs choosing Web3 as their preferred investment area.
The downturn in the traditional financial (TradFi) market has been a headwind for the crypto market. The collapse of Terra’s stablecoin added to the downward market pressure, leading to a significant drop in the overall market cap.Macroeconomic factors are already affecting VCs, which are approaching projects more cautiously and may reduce capital allocations to reduce their exposure to backing bad projects.
The blockchain industry saw more than 620 financing deals, an increase of 100 from the previous quarter. However, the average value per deal fell by more than 16% to $26.8 million, which may indicate an increase in risk-averse behavior by VCs and investment firms. So while the data shows signs of slowing investment inflows into the crypto space, interest in helping build the next generation of blockchain and crypto products still appears to be strong.
Web3 becomes the most interesting area for crypto VCs
In major areas of the blockchain industry such as decentralized finance (DeFi) and centralized financial blockchain infrastructure, Web3, and NFTs, DeFi has basically been the king of venture capital inflows. That all changed in the second quarter, with Web3 accounting for about 42% of all single transactions, compared to DeFi’s 16%.
Seven of the ten most active VCs chose Web3 as their preferred investment area. Pushing companies to actively participate as part of the overall concept of the Metaverse is the driving force behind this new trend.
Metaverse Investment leads the way
Metaverse and Web3 are an ongoing theme in large deals. In April, Epic Games, the developer of the online game Fortnite, announced a $2 billion funding round aimed at accelerating progress on its plans for the Metaverse. The participants in this round of financing are Sony Group Corporation and LEGO Group Holding Company KIRKBI. The three companies are poised to join forces to develop new virtual production projects and digital fan experiences in sports and gaming that will impact the future of the entertainment and digital gaming industries.
Animoca Brands leads in M&A
Mergers and acquisitions can provide companies with enormous strategic opportunities, especially during turbulent times.Animoca Brands, a Hong Kong-based gaming and venture capital firm, is taking these strategic opportunities seriously, acquiring three companies in the GameFi space and others in the education and marketing space.
Two large companies also participated in the acquisition – eBay and Napster. eBay acquired Known Origin, an NFT marketplace, to help expand its customer-facing product offering. Algorand and Hivemind acquire Napster to facilitate the music NFT marketplace to improve access for consumers and music creators.
Animoca Brands announced last Tuesday that the company has closed a $75.32 million funding round at a pre-money valuation of $5.9 billion. According to a statement from Animoca Brands, the new funding will continue to fund strategic acquisitions, investments and product development, secure the licensing of popular intellectual property, and advance the open Metaverse, including through its efforts to promote digital property rights for online users.
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/q2-2022-web3-emerges-as-top-area-of-interest-for-crypto-vcs/
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.