Venture Capitalists invest $29 billion into crypto firms in 2022 despite market downtrend

Despite the market fall, venture capitalists invest $29 billion in cryptocurrency companies in 2022.



Most enterprises in the sector have been negatively impacted by the 2022 cryptocurrency market collapse, which was a factor that was anticipated to affect the flow of capital.


The large sell-off doesn't seem to faze venture capitalists, though, as they move through with their funding plans.


According to a survey by Keychain Ventures, cryptocurrency startups raised over $29 billion in 2022, which is $2 billion less than the total amount of $31 billion recorded across 2021.


Notably, the companies raised around $5.5 billion in 2020, a figure that increased by more than 40% in 2021 as they capitalized on the broader market bull run that concluded with Bitcoin reaching an all-time high of just under $68,000.


According to the research, investment was mostly focused on a few distinct categories, including infrastructure and non-fungible tokens (NFTs), which accounted for 14% of the funding, and decentralized finance (DeFi), which accounted for 16%.


Andreessen Horowitz, a cryptocurrency venture capital firm, won the various investment rounds with a total raise of $2.2 billion, which increased to $4.5 billion in Q2.


Sequoia raised $500 million elsewhere in Q1, $850 million for Southeast Asia, and $2 billion for India in Q2. The third-placed company, FTX Ventures, has invested in 11 acquisitions and has a $2 billion fund.

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