VC: Galaxy Digital Research has noted in its latest report that VCs invested more than $5.5 billion in crypto businesses in Q3 2022. But, it was a new low for the year.
PitchBook noted a steep decline of over 37% in the third-quarter crypto funding against the same period in 2021. However, despite the low quarterly numbers through 518 deals, the figure exceeds the 2020 peak and the 7-year average of $3.1 billion by over $2 billion.
Lower crypto market cap accompanied by lower VC funding
Galaxy remarked that the decline is seen due to the volatile market conditions in May and June, with funds probably delaying their fall fundraising until Q4 to give the markets time to adjust.
In Q3, crypto prices also remained subdued after the total market cap hit a low in July, per CoinGecko’s quarterly report. It noted, “In Q3, it rallied up to ~$1.2T in August, before falling again to end the quarter at +6.5% or about ~$100B higher…
