What Is Going On ?

With the the Terra collapse, the Bitcoin roller coaster, it would be natural to declare #crypto and #blockchain dead. Even the most die-hard Bitcoin Inc. maximalists and #crypto proponents are seemingly settled for a long, cold #cryotowinter.

🔥 But not #vcs.

April started on a bold pace to break another record-setting quarter. At the start of May, all that changed. Individual deal activity has been up 19.9% since Q1. However, the pace has been slowing since April. In addition, the average deal value declined 16.5%, suggesting that VCs are still willing to fund projects, albeit with more modest capital amounts.

🔵VCs are stacking up Web3

#web3 dominated almost every metric in Q2. Early-stage investments in Seed rounds saw the most activity as usual and total capital inflows of $2.18 billion. The Web3 sector also slightly had more individual deals than #defi and #cefi in the later-stage investment and expansion rounds.

🔵 Future Trend- Shift to CEFI?

Interestingly, #cefi was not a sector that saw substantial attention from investors over the past five quarters, except #cefi players such as Coinbase, FTX, and Binance. In Q2, the number of deals across all stages of investment increased significantly and could be the start of a future trend.

🔵 $2B Metaverse Bet: Epic Games Leads Q2 Top 10 Deals

Epic Games saw a $2-billion investment round led by Sony and KIRKBI A/S (the company behind the LEGO Group)- an expansion into the #metaverse in sports and other virtual initiative- concentrating on what will have the most impact on the current generation of children in the #future.

🔵 Slowing Down But Not Out

More traditional finance (#tradfi ) institutions are moving into #cryptotrading , #metaverse , #cryptocurrencycustody, #defi , and other #blockchain and #decentralized ledger applications.
This has been a trend that continues despite the macroeconomic downturn seen in the first half of 2022.

🔵 Animoca Brands Goes Shopping

Animoca Brands was involved in five acquisitions focused on #gamefi , #marketing, and #education. Out of the 43 individual deals Animoca Brands entered in Q2, 72% focused on #web3 .

🔵 Andreessen Horowitz Doubles Down Despite Market Downturn

Andreessen Horowitz announced a $4.5-billion fund, believing we have entered the “Golden Era of Web3” and using the fund to help hasten #web3 adoption and growth.

✨Seven out of the top ten most active #vcs chose #web3 as the sector of choice for investment. The push for active involvement of companies to pursue becoming part of the overall concept of the Metaverse is the driving force behind this new trend. ✨

Thanks to my friend Efi Pylarinou for sharing this report from Cointelegraph for Q2 investment.

#blockchain #metaverse #web3 #vcs #cryptocurrency