Blockchain venture capital funding fell to a 12-month low in August

Data from Cointelegraph Research reveals that in August 2022, the blockchain industry invested $1.36 billion of venture capital into the blockchain industry, a 12-month low and the fourth month-on-month decline consecutive capital inflows. August inflows represent a 31.3% drop from July’s $1.98 billion, and the 101 deals that closed in August had an average capital investment of $14.3 million, down 10 .1% compared to July. The data was pulled from the Cointelegraph Research Terminal venture capital database, which contains comprehensive information on deals, mergers and acquisition activities, investors, crypto companies and funds.

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August 2022 had the lowest capital inflows in 12 months. Source: Cointelegraph Research VC Database

August’s funding focused on Web3, NFT and infrastructure

The three most popular investment categories in August were Web3, infrastructure and non-fungible tokens (NFTs), with more than $1.16 billion, or 85.4%, of total capital. Some of the biggest deals include: Web3 game developer Limit Break raised $200 million. Barca Studios, the Web3 arm of FC Barcelona, ​​raised $100 million from Chiliz, the owner of blockchain-based fan rewards platform Socios. Ready Player Me, a platform that lets people create metaverse avatars, raised $56 million in a Series B funding round led by Andreessen Horowitz. Inworld AI, a development platform for creating AI-based virtual characters, raised $50 million in a Series A round led by Section 32 and Intel Capital.

Sectors of investor interest as of August 2022. Source: Cointelegraph Research VC Database

CoinFund is bullish despite market conditions

Venture capital firms have also been raising funds. Web3 and crypto-focused venture capital firm CoinFund launched a new $300 million fund to support early-stage startups, emphasizing their optimistic belief that Web3 “will continue to advance through all cycles of the market”. Orange DAO raised $80 million from the Algorand Foundation and Near and looks set to continue growing as a decentralized autonomous organization focused on investment that supports crypto startups. Meanwhile, Shima Capital launched a $200 million debut equity fund to support digital asset start-ups.

For a comprehensive analysis of the blockchain VC sector in August, check out Cointelegraph Research’s monthly “Investor Insights” report. The research team breaks down the major market-moving events of the past month and the most critical data from various industry sectors, including venture capital.

Download and buy this report in the Cointelegraph research terminal.

This article draws data from the Expansive venture capital database from Cointelegraph Research Terminals. This article is for informational purposes only. It does not represent investment advice, investment analysis or an invitation to buy or sell financial instruments. In particular, it does not serve as a substitute for individual investments or other advice.