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Crypto startups raised $12 billion in the first quarter of 2022

The amount of money invested in cryptocurrency by venture capitalists continues to rise. According to a recent report, venture capital companies established many new milestones in their investment in the crypto business in the first quarter of 2022.

During the first three months of this year, venture capital firms invested a record-breaking $12.5 billion, according to Block Research’s analysis of blockchain private fundraising and mergers and acquisitions (M&As). This was accomplished throughout the 624-financing agreements that took place, which was also a world record. The financial amount of VC investment in 2022 is up 220 percent from the first quarter of 2021.

As per the research, the first quarter of 2022 is the seventh consecutive first quarter in which VC companies have surpassed their prior investment record. In the meantime, the NFT/gaming crypto sub-sector received a greater share of the investments. Projects in this sub-sector accounted for around 36% of all investment transactions. DeFi projects, on the other hand, had a dip in investment for the fourth quarter in a row, accounting for 20% of total investment.

Numerous experienced crypto venture capital companies as well as completely new players have participated in investment rounds in 2022. Andreessen Horowitz, Tiger Global, and Paradigm, among the common suspects in crypto investment, have lately made the rounds.

Some traditional venture capital organizations, such as Sequoia Capital and Google Ventures, have also invested in crypto start-ups to help them reach new high valuations this year. However, since last year, venture capital companies have been optimistic about the cryptocurrency market. According to Galaxy Digital, VC companies spent over $33 billion in the business in 2021.

Despite legal uncertainty, venture capitalists have continued to bet significantly on the crypto business, demonstrating a strong conviction in the industry’s long-term prospects.
This is also a testament to how much the crypto sector has evolved and become mainstream, with a market cap of over $2 trillion.

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About the author, Deyvid Stoyanov

Deyvid developed his passion for technology, innovation, blockchain and decentralization throughout his bachelor and masters degree studies in Bulgaria and Italy. With several years of experience in the private sector, he is currently part of the FinTech Legal Center Tallinn-based team and remains immersed in the transformation of the financial and banking sector, the adoption of blockchain and cryptographic technologies as well as their interrelationship with state supervisory authorities and the European regulatory structure.

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