39 charts to understand the investment and financing trends in the blockchain industry in Q2 2022
CB Insights' latest report on blockchain investment and financing shows that in the second quarter of 2022, the financing amount experienced a quarter-on-quarter decline for the first time in two years, with the total financing amount over 100 million USD sharply decreasing. Animoca Brands has been the most active investor for three consecutive quarters.Source: CB Insights
Compiled by: Bai Ze Research Institute
2022 Q2 Crypto VC Status:
Global Crypto investment funds decline. Blockchain venture capital fell to $6.5 billion, marking the first quarter-on-quarter decline in two years. Investors have cut back on cryptocurrency investments due to macroeconomic pressures and concerns over cryptocurrency valuations and stablecoins.
Decrease in billion-dollar financing. The total amount of financing over $100 million dropped to $2.6 billion, less than half of the total from the previous quarter, and the number of large financing rounds (16) also decreased. This indicates that investors are becoming more cautious due to the "crypto winter" and recent price fluctuations in the cryptocurrency market.
Birth of Crypto unicorns halved. This quarter saw the emergence of 8 new Crypto unicorns, only half of the record high from the previous quarter (16), with the most valuable being the Seychelles-based cryptocurrency exchange KuCoin, valued at $10 billion, and half of the new unicorns being Web3 startups.
The future of NFTs, gaming, and the metaverse may be more challenging. Although the number of project financings in the NFT, gaming, and metaverse categories decreased quarter-on-quarter, they still attracted over 150 investments. However, projects in these categories may face a more difficult road ahead. NFT trading volumes have declined, and gaming and the metaverse will face fierce competition from large tech companies.
2022 Q2 Crypto VC Landscape:
Crypto investment in Europe grows. Europe is the only region where Crypto venture capital increased. In the second quarter of 2022, it matched Asia with $1.4 billion in investments but lagged behind the U.S. at $3.4 billion. Among the top 10 Crypto investments in Europe, 6 were in Web3 (e.g., NEAR Protocol, Msquared), and 3 were in institutional custody cryptocurrency solutions (e.g., Elwood Technologies, Coinhouse).
Growth in blockchain infrastructure. Blockchain infrastructure was the only category to receive more investment this quarter, reaching a new high of 47 deals, with the largest being a $350 million Series C funding round for the NEAR Protocol.
Over 40 Crypto companies had M&A exits, setting a record. With several prominent CeFi (centralized finance platforms) filing for bankruptcy, giants like Binance and FTX are attempting to acquire these companies at discounted prices. Additionally, other companies like Bolt, Robinhood, and eBay also acquired at least one Crypto or NFT company this quarter.
Animoca Brands is the top investor. Animoca Brands remains the most active investor for three consecutive quarters, although the number of its investments also decreased quarter-on-quarter. Furthermore, the number of investments by the 10 most active investors this quarter (including a16z and Coinbase) decreased by 24%.
Silicon Valley surpasses New York as the main force in U.S. Crypto investment. Silicon Valley became the top location for U.S. Crypto financing this quarter, with a total investment of $937 million, with the largest investments coming from institutional crypto trading platform FalconX ($150 million) and NFT marketplace Magic Eden ($130 million). Silicon Valley surpassed New York ($678 million) this quarter, which had maintained its lead for the previous 8 quarters.
Overall Data Interpretation
Global Crypto funds decreased for the first time in two years.
Total amount of financing over $100 million decreased.
The number of new Crypto unicorns this quarter halved.
NFTs, gaming, and the metaverse categories attracted over 150 investments for three consecutive quarters.
Crypto investment funds from Europe saw significant growth.
Investment in blockchain infrastructure reached a historic high.
Crypto M&A exits reached 49 this quarter, setting a record.
Animoca Brands has been the largest investor for three consecutive quarters.
Silicon Valley became the top location for U.S. Crypto investment this quarter, surpassing New York.
Crypto Investment Trends
Global Crypto financing in 2022 may reach a historic high.
The U.S. leads in Crypto investment this quarter, followed by Asia and Europe.
VCs continue to lead in Crypto investment this quarter.
With 43 investments in the first half of the year, the number of financing rounds over $100 million in 2022 may reach a historic high.
Top "unicorn" financing in Q2 2022:
Early investments in Crypto projects/companies still dominate.
Top "unicorn" seed rounds in Q2 2022
Top "unicorn" Series A financing in Q2 2022
Top "unicorn" Series B financing in Q2 2022
Top "unicorn" Series C financing in Q2 2022
Crypto Unicorn Companies
The number of new unicorns in Q2 2022 halved, totaling 71.
The U.S. has 46 unicorn companies, accounting for 65% of the total, including 5 new unicorns.
The number of unicorn companies in the U.S. far exceeds that of other regions, followed by Asia.
Top "new unicorns" in Q2 2022
Top "unicorns" by valuation in Q2 2022
Top VCs by number of investments in Q2 2022
Top CVCs (Crypto industry VCs) by number of investments in Q2 2022
Web3 Track Investment Data
Investment in Web3 startups in the first half of 2022 has matched the total funding for the entire year of 2021.
After six consecutive quarters of growth, funding and investment numbers in the Web3 category decreased in Q2 2022.
The U.S. leads in global Web3 investment share, followed by Asia.
Top "Web3" financing in Q2 2022
NFT, Gaming, and Metaverse Track Investment Data
The number of investments in NFTs, gaming, and the metaverse has exceeded the total for the entire year of 2021 as of early 2022.
However, the amount of funding in these three categories has decreased.
Top "NFT, Gaming, and Metaverse" financing in Q2 2022
DeFi Track Investment Data
Investment funds for DeFi are expected to reach a historic high.
Europe leads in global DeFi investment share, surpassing the U.S.
Top "DeFi" financing in Q2 2022
Blockchain Infrastructure Track Investment Data
Investment in blockchain infrastructure has exceeded the total for the entire year of 2021.
This quarter, investment in blockchain infrastructure in Asia and Europe has seen strong growth.
Top "blockchain infrastructure" financing in Q2 2022
