December 14, 2022
By Sharan Kaur Phillora
VC funding in crypto projects is expected to exceed the 2021 record despite a series of crypto blowups, including one of the biggest crypto exchanges in FTX, according to a PitchBook report. But the research firm noted that crypto funding slowed in the most recent quarter as investors grew concerned due to a lack of regulation and guidance.
Here’s what we know:
Crypto projects globally attracted $19.9 billion in venture capital (VC) investments in Q3 2022, despite the recent FTX collapse, 41% higher than a year ago, according to Pitchbook. Last year the sector drew in a record $21.2 billion.
Last month’s FTX debacle marks the latest in a series of crypto blowups in 2022, that triggered massive withdrawals from crypto exchanges. Earlier, the collapse of Celsius Network and Voyager Digital fell into bankruptcy during the LUNA implosion in May.
According to PitchBook, Web3 saw a surge in VC funding in Q3, with $1.5 billion in the quarter, 44.5% higher than in Q2.
Robert Le, the crypto analyst at PitchBook, stated, “The lack of clear regulation and guidance remains one of the crypto industry’s greatest concerns and limiting factors. Mainstream adoption is unlikely to occur until better guardrails in the form of established laws and guidelines are in place.”
Big players like Goldman Sachs and BlackRock are now hunting for opportunities to buy or invest in distressed crypto companies staying bullish on the sector.
About the author
Sharan Kaur Phillora’s thirst for knowledge has led her to study many different subjects, including NFTs and Blockchain technology – two emerging technologies that will change how we interact with each other in the future. When she isn’t exploring a new idea or concept, she enjoys reading literary masterpieces.
