The research firm Galaxy Research reported that in 2022 venture capital companies invested $ 30 billion in startups that work in the field of cryptocurrencies and Web3.
Contrary to the bearish trend that dominated the digital asset market last year, the amount of investment in crypto firms fell by only $ 1 billion compared to 2021. In relation to the indicator recorded in 2020, the value of investments has increased by about 50 times.
The size of investments in cryptocurrency and Web3 startups
At the same time, the head of the Galaxy Research department, Alex Thorne, drew attention to the drop in the amount of invested funds during 2022. In the fourth quarter, the volume of investments fell to a two-year low and amounted to approximately $ 2.8 billion. Thorne explained the negative dynamics by changes in the US monetary policy and negative macroeconomic factors.
According to the expert, in 2023, cryptocurrency organizations will have big problems with attracting financing if the trend that started in 2022 continues. Due to the decrease in investor activity, not only the creators of blockchain projects will suffer, but also the heads of Web3 startups, to which Thorn refers the creators of NFT, metaverses, games and decentralized autonomous organizations.