1. SipPop GamesHome
  2. Tech Ticker

Venture Capital in Web3 Field Set to Decline in 2022

• Tech Ticker • 161 views

It is reported that a report from Blockdata stressed that with the vigorous development of venture capital in the broader Web3 field in 2021, the capital will …

Venture Capital in Web3 Field Set to Decline in 2022

It is reported that a report from Blockdata stressed that with the vigorous development of venture capital in the broader Web3 field in 2021, the capital will decline continuously for quarters by 2022. Blockdata analyzed the data from CB Insights, rounded the value of venture capital in the last quarter of 2022, and pointed out that it was down 34% compared with the third quarter of 2022. Compared with the first quarter and the second quarter of 2022, the last quarter of 2022 saw a sharp decline, down 67% and 53% respectively. Venture capital declined quarterly from the historical high of $11 billion investment and 692 transactions in the first four months of 2022.

Report: VC and cryptocurrency funds declined in the fourth quarter of 2022

Interpret the above information:


According to a report by Blockdata, venture capital in the broader Web3 field is expected to experience a continuous decline in the coming year. The report notes that the development of venture capital in the industry has been vigorous in 2021 but will begin to decline by 2022. Blockdata analyzed data from CB Insights to make this claim and found that the value of venture capital in the last quarter of 2022 was down 34% compared to the third quarter of the same year.

The report highlights a significant decline in the last quarter of 2022 compared to the first and second quarters, with investment dropping by 67% and 53% respectively. This decline is significant considering the historical high of $11 billion investment and 692 transactions in the first four months of 2022.

It is evident that the Web3 industry has experienced significant growth in venture capital investment over the past year. However, it appears that this growth may not be sustainable, and investors may begin to pull back on their investments. The reasons for this decline are not specified in the report, but there could be several factors at play.

One possibility is that the market has become oversaturated with startups, leading to increased competition for investment. Another possibility is that investors may be concerned about regulatory changes that could affect the industry. Additionally, there may be a level of uncertainty surrounding the future of the Web3 industry, which could make investors hesitant to invest in the long term.

Despite the decline in investment, it is important to note that venture capital in the Web3 industry is still expected to remain relatively high in the coming years. The decline is noticeable compared to the current levels of investment, but it does not necessarily mean that the industry is in trouble.

In conclusion, the report by Blockdata suggests that venture capital in the Web3 industry is expected to decline in the coming year. The exact reasons for this are not specified, but it could be due to increased competition, regulatory changes, or uncertainty surrounding the industry. It is important to note that while the decline is significant, venture capital investment in the industry is still expected to remain high in the coming years.

This article and pictures are from the Internet and do not represent SipPop's position. If you infringe, please contact us to delete:https://www.sippop.com/3395.htm

It is strongly recommended that you study, review, analyze and verify the content independently, use the relevant data and content carefully, and bear all risks arising therefrom.

Like (0)
Previous 02/26/2023 08:06
Next 02/26/2023 09:10

Related recommendations