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‘Web 3.0’ venture investment in freefall as crypto winter shakes market


Investment into digital asset firms has been in freefall this year as a deep ‘crypto winter’ sends shockwaves through the sector and causes venture capital firms to turn off the funding taps.

Crypto and so-called ‘Web 3.0’ firms have attracted just $2.2bn worth of investment in the fourth quarter of the year so far, down from $4.6bn in the previous quarter and a far-cry from the $11.5bn in the first three months of the year, according to the crypto report from investment data firm Pitchbook.

The slowdown comes as the sector is rocked by a plunge in crypto prices and a string of high-profile bankruptcies including Sam Bankman-Fried’s exchange FTX.

Analysts at Pitchbook said that while 2021 had been a breakout year for funding the sector, 2022 had seen investment go into reverse.

“​While the amount of capital invested trended upwards each quarter in 2021, in 2022, it has been the exact opposite,” the analysts said.

“Only $4bn was invested in [the third quarter] of 2022, representing a 38.3 per cent quarter on quarter decline and the lowest amount since [the second quarter] of 2021,” the report found.”

 Just 141 deals were struck during the third quarter of the year – the lowest levels since the final quarter of 2020.

The post ‘Web 3.0’ venture investment in freefall as crypto winter shakes market appeared first on CityAM.

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