Web3 Drawing Investors Despite Bear Market, Says Latest Report

Total Deal Value in Q2 2022 slightly Exceeded Q1 2022

According to a report by Cointelegraph Research and Keychain Ventures, although average deal size decreased over the last few months, as the venture capitalists were becoming more cautious, the largest players seemed to use the bear market as an opportunity to acquire as much as possible.

Individual deal activity has been up 19.9% since Q1 2022. However, the pace has been slowing since April 2022. In addition, the average deal value declined 16.5%, suggesting that VCs are still willing to fund projects, albeit with more modest capital amounts.

Web3 dominated almost every metric in Q2 2022. 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.


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The top 10 most active VCs switched focus to Web3 in Q2 2022 instead of DeFi and NFTs in Q1 2022.

7 of the top 10 most active investors’ number one capital allocation sector were in Web3. These 7 investors’ percentage allocation ranged from 43% to 75% of all their investment activity in Q2 2022.

Leading Cryptof Funds Announced in Q2

The top 10 most active VCs accounted for 65% of all individual deals in 2021 and Q1 2022. However, this number fell to just over 42% in Q2 2022, while the total number of individual deals increased to 621 – 100 more than in Q1 2022.

With 43% of all individual deals, Web3 dominated the VC capital interest in Q2 2022. DeFi took a back seat with 16% of capital inflows, a drastic change from the last five quarters.

Animoca Brands was involved in 5 acquisitions focused on GameFi, marketing, and education. Out of the 43 individual deals, Animoca Brands entered in Q2 2022 with 72% of the capital focused on Web3.

$2 billion investment raised by Epic Games, led by Sony and Kirkbi, to go towards its metaverse expansion plans, was the biggest deal in Q2 2022.


Read / Download the full venture capital report below:


RECOMMENDED READING: [Q1, 2022] Top 10 Largest Raises in Crypto


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