Crypto VC Investments Fall 26% in 2022 H1, Deal Flow Soars

Deals rise, but 2022’s first half still sees crypto VC investments fall to $9.6 billion vs. $12.5 billion for the same period in 2021.
Crypto VC Investments Fall 26% in 2022 H1, Deal Flow Soars

Crypto venture capital (VC) investments stand at $9.6 billion, down 26%, in the first half (H1) of 2022, as against $12.5 billion in 2021 H1, per reports. Even amid the terraUSD stablecoin collapse, severe liquidity issues at Celsius and Three Arrows Capital, the deal flow has risen in 2022 H1 as against 2021 H1.

While the number of pre-seed, seed, and all venture rounds’ deals in H1 2022 stand at 534, H1 2021 records only 456 in year-on-year (yoy) deals. This means lower overall investments rose owing to deal sizes smaller in nature.

Q2 2022 deals in total value at $4.2 billion, down $1 billion against Q1 2022. GlobalData reports a drop of 22% YOY to $123.1 billion in overall VC deals in the US in 2022.

In Q4 2021, the Cryptoverse exhibited enough bullishness, recording $6.1 billion in investments, precisely the reason why current numbers are lagging.

Also read: a16z Funds Ex-Coinbase Exec.’s Decentralized Social Network

It’s worth noting that Andreessen Horowitz (a16z) officially announced the launch of a whopping $4.5 billion crypto fund in May 2022. This makes a16z’s total crypto investment fund to $7.6 billion.

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