While venture capital investments have generally declined in the global economy, many investment and management companies have flocked to the blockchain side.
Troubled processes in the global economy in recent years have also affected capital investors. The anti-inflationary interest rate move of the USA set a barrier in front of risk investments. In this situation, where the crypto industry was also affected, the bear market intensified its effect. However, venture capital investments have recently started to shift to the blockchain side. With the influence of the crypto bear market, investors are keen to get involved at an early stage. The prominent investment areas were Web3 and DeFi. The drop in overall crypto market cap to $800 billion has particularly attracted capital investment groups. According to Pitchbook analysts, venture capital investors flocked to the blockchain sector in the third quarter.
Increase in Blockchain Investors Observed
According to Pitchbook’s Emerging Tech report, venture capital investments in the third quarter reached $4.7 billion with 153 deals. Last quarter, this report was $6.9 billion with 244 deals. Analysts attributed the 32 percent quarterly decline to FTX. However, interest in venture capital investments has not waned despite this massive collapse in the industry.
Pitchbook stated that despite the FTX events in the crypto industry, venture capitalists did not hesitate. According to the analysis, in the third quarter, the Web3 industry attracted $879 million with 24 deals.
The company that prepared the report examined 5997 agreements. Among these deals, it examined 153 early-stage deals based on the top 15 venture capitalists.
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