{"id":438268,"date":"2022-04-27T18:14:00","date_gmt":"2022-04-27T15:14:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/q1-2022-venture-capital-activity-in-crypto-set-to-outpace-2021\/"},"modified":"2022-04-27T18:14:00","modified_gmt":"2022-04-27T15:14:00","slug":"q1-2022-venture-capital-activity-in-crypto-set-to-outpace-2021","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/q1-2022-venture-capital-activity-in-crypto-set-to-outpace-2021\/","title":{"rendered":"# Q1 2022 venture capital activity in crypto set to outpace 2021"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a373b82a4185\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a373b82a4185\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/q1-2022-venture-capital-activity-in-crypto-set-to-outpace-2021\/#%E2%80%9D_Q1_2022_venture_capital_activity_in_crypto_set_to_outpace_2021_%E2%80%9C\" >&#8221; Q1 2022 venture capital activity in crypto set to outpace 2021 &#8220;<\/a><ul class='ez-toc-list-level-2' ><li class='ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/q1-2022-venture-capital-activity-in-crypto-set-to-outpace-2021\/#Leaving_2021_behind\" >Leaving 2021 behind<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/q1-2022-venture-capital-activity-in-crypto-set-to-outpace-2021\/#Record-breaking_number_and_value_of_deals\" >Record-breaking number and value of deals<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/buradabiliyorum.com\/en\/q1-2022-venture-capital-activity-in-crypto-set-to-outpace-2021\/#Active_seed_rounds_but_expansion_rounds_see_the_most_capital_interest\" >Active seed rounds, but expansion rounds see the most capital interest\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/buradabiliyorum.com\/en\/q1-2022-venture-capital-activity-in-crypto-set-to-outpace-2021\/#Blockchain_needs_the_right_people\" >Blockchain needs the right people<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/buradabiliyorum.com\/en\/q1-2022-venture-capital-activity-in-crypto-set-to-outpace-2021\/#Quarterly_VC_reports_from_Cointelegraph_Research_Terminal_and_Keychain_Ventures\" >Quarterly VC reports from Cointelegraph Research Terminal and Keychain Ventures<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_Q1_2022_venture_capital_activity_in_crypto_set_to_outpace_2021_%E2%80%9C\"><\/span>&#8221; Q1 2022 venture capital activity in crypto set to outpace 2021 &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<div class=\"post-content\" data-v-2a0745c6>The first quarter of 2022 saw unprecedented growth in terms of venture capital activity in different blockchain sectors. In 2021, venture capitalists poured in over $30 billion into infrastructure, nonfungible tokens (NFTs), decentralized finance (DeFi), centralized finance (CeFi) and Web3. That set the bar pretty high if 2022 was going to beat it. In the first quarter of 2022, capital inflows from venture capitalists were over $14.6 billion, or around 48% of all the capital investment by the last year.\u00a0<\/p>\n<p>Over 500 individual deals were struck in the first three months of 2022 throughout the five major sectors listed above. Cointelegraph Research studied and analyzed its database of deals, mergers and acquisitions activity, investors, and crypto companies to produce a 12-page report on the major VC activities in the crypto sphere. <\/p>\n<h2><span class=\"ez-toc-section\" id=\"Leaving_2021_behind\"><\/span>Leaving 2021 behind<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Anyone interested in cryptocurrencies, blockchain and the future of this industry should pay close attention to the contents of this report. By studying what venture capitalists are doing and knowing the players who are investing in projects, and which platforms are being invested in, individuals can help stay on top and make informed decisions.<\/p>\n<p>It takes more than just great <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/technology\/\" data-internallinksmanager029f6b8e52c=\"4\" title=\"Technology\" target=\"_blank\" rel=\"noopener\">technology<\/a> for people to use a product. History is filled with great products that just did not have the right mix of marketing, management or capital to bring them successfully to market. <\/p>\n<p>Venture capitalists aim to resolve these issues by investing more than just the capital needed to get a project off the ground but also provide a network of contacts that can provide solutions to the correct marketing and strategic management mix. <\/p>\n<p><strong><em><a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">Download<\/a> the full report here, complete with charts and infographics<\/em><\/strong><strong><em>.<\/em><\/strong><\/p>\n<p>The Cointelegraph Research Terminal, together with Keychain Ventures, brings you a report that dives into the first three months of 2022. The 12-page report by Cointelegraph Research analyzes the most active investors, M&amp;A, largest deals and new funds in Q1 2022. <\/p>\n<h2><span class=\"ez-toc-section\" id=\"Record-breaking_number_and_value_of_deals\"><\/span>Record-breaking number and value of deals <span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The first quarter of 2022 saw an unprecedented amount of capital inflows in the blockchain industry. Since the start of 2021, each quarter has continuously increased the total capital invested in this space, culminating in Q1 2022, which ushered in over $14.6 billion in VC investment. Each deal\u2019s average U.S. dollar value has also increased and now stands at around $32.3 million for the last three months. <\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-04\/0674b22b-f017-4fc9-b60f-0a244332f717.png\"><\/figure>\n<p>The number of individual deals also rose and broke the previous record, reaching over 500 in Q1 2022. The increase is likely to continue to trend higher, as the space is attracting new funds from Bain Capital and Sequoia Capital, long-time venture capital firms in traditional markets. The industry also saw consolidation through acquisitions by long-time crypto players like OpenSea, Coinbase, Fireblocks, FTX and Blockchain.com. In all cases, these strategic purchases expand the reach of each of the firms\u2019 core business offerings.<\/p>\n<p><template data-name=\"subscription_form\" data-type=\"consulting_newsletter\"><\/template><\/p>\n<p>The recently formed funds like Bain Capital and Haun Ventures are focused primarily on Web3 projects, which, interestingly enough, had the most involvement in 2022\u2019s first quarter and overtook the DeFi sector \u2014 the usual leader. CeFi continues to be the least active in terms of the number of deals and capital inflows of all the different sectors. <\/p>\n<p>The most active investors are more evenly distributing their investments across two or three different sectors, which changed from the patterns seen in 2021. This potentially shows a maturing of VC strategy; but still, these equal allocations are across DeFi, Web3, NFTs and infrastructure, with much less being invested in CeFi. <\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-04\/429b0a5e-d030-4af6-b400-bec038d3fa85.png\"><\/figure>\n<h2><span class=\"ez-toc-section\" id=\"Active_seed_rounds_but_expansion_rounds_see_the_most_capital_interest\"><\/span>Active seed rounds, but expansion rounds see the most capital interest\u00a0<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Pre-seed and seed rounds had the most VC activity at 288 individual deals with over $2.1 billion. Watching the development in these rounds is promising for the entire industry, as each startup brings new applications for the blockchain and new competition for previously formed organizations. <\/p>\n<p>Expansion rounds did not see as much activity but recorded over 2.5x the capital inflows at almost $5.8 billion. These rounds help to encapsulate the overall growth potential and reach of the current blockchain projects, which most VCs are willing to pour money into as they are less risky than earlier stage investments, like <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/watch-movies-tv-seriess\/\" data-internallinksmanager029f6b8e52c=\"8\" title=\"Watch Movies &amp; TV Series\" target=\"_blank\" rel=\"noopener\">Series<\/a> A rounds.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Blockchain_needs_the_right_people\"><\/span>Blockchain needs the right people<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>One issue intensified by all this capital investment is the need for people and talent in the blockchain space. As more companies have plans to expand, create new products and diversify their organizations, employees with the right skills are becoming harder to find. Cointelegraph Research recently <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/youtu.be\/4lVSF8JBNFM\">interviewed Keychain Ventures and Dragonfly Capital<\/a>. In that conversation, many topics were discussed, including the bottleneck of human capital, which will only get further strained as more investment pours into the industry.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Quarterly_VC_reports_from_Cointelegraph_Research_Terminal_and_Keychain_Ventures\"><\/span>Quarterly VC reports from Cointelegraph Research Terminal and Keychain Ventures <span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><em>The report pulls from Cointelegraph Research Terminals\u2019 expansive database along with analysis from Michael Tabone, an economist from Cointelegraph Research. Michael has an extensive background in economics, business, finance, cryptocurrency, blockchain technology and working with emerging technologies. Besides working for Cointelegraph Research, Michael is a Ph.D. candidate working on his dissertation, which is focused on the theory and application of DAOs.<\/em><\/p>\n<p><em>Keychain Ventures is a crypto investment firm that engages in investing different funds in the blockchain space. Keychain Ventures, along with Cointelegraph Research, will be presenting quarterly interviews with VC firms as well as crypto\/blockchain projects which have recently gone through a funding round. These interviews will open up different viewpoints of investment practices from all parties. <\/em><\/p>\n<p><em>This article is for information purposes only and represents neither investment advice nor an investment analysis or an invitation to buy or sell financial instruments. Specifically, the document does not serve as a substitute for individual investment or other advice.<\/em><\/p>\n<\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/2022-q1-venture-capital-activity-in-crypto-set-to-outpace-2021\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8221; Q1 2022 venture capital activity in crypto set to outpace 2021 &#8220; The first quarter of 2022 saw unprecedented growth in terms of venture capital activity in different blockchain sectors. In 2021, venture capitalists poured in over $30 billion into infrastructure, nonfungible tokens (NFTs), decentralized finance (DeFi), centralized finance (CeFi) and Web3. That set&#8230;<\/p>\n","protected":false},"author":1,"featured_media":438269,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMDQvZWIzZjU1NTgtNDE0Yy00ZTI5LTk3MmYtOWZhZDFjNzUxNjY3LmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[75952,74355,117,71745],"class_list":["post-438268","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-cointelegraph-consulting","tag-adoption","tag-business","tag-venture-capital"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/438268","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=438268"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/438268\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/438269"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=438268"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=438268"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=438268"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}