2022 was a watershed twelvemonth for crypto task capital, arsenic investors poured tens of billions of dollars into blockchain-focused startups contempt the overwhelmingly bearish inclination successful plus prices. Is the VC-dominated crypto backing model bully for the industry? Only clip volition tell.
Cointelegraph Research is inactive successful the process of tallying each the backing figures for the year, but 2022 easy outpaced each different years successful presumption of full superior raised and deals completed. VC inflows were supra $14 cardinal successful each of the archetypal 2 quarters earlier receding to conscionable nether $5 cardinal successful the 3rd 4th — inactive an awesome tally fixed the industry-wide contagion sparked by the abrupt collapses of Celsius, Three Arrows Capital, Genesis, BlockFi and FTX, among others.
Against this backdrop, we’ve compiled a database of immoderate of the biggest backing stories of 2022.
Haun Ventures: Raises $1.5B
In March, crypto capitalist and Coinbase committee subordinate Katie Haun raised $1.5 billion for 2 Web3-focused concern funds. The recently launched Haun Ventures established a $500 cardinal early-stage money and a $1 cardinal acceleration money to put successful “every furniture of the Web3 tech stack.” In launching her caller fund, Katie Haun recruited erstwhile executives from Airbnb, Coinbase and Google tech incubator Jigsaw.
Introducing @HaunVentures, a steadfast built for the adjacent procreation of the internet. We’ve raised $1.5 cardinal crossed 2 funds to put successful web3. An breathtaking archetypal step, but the existent enactment begins now. https://t.co/tBeE4OEJkD— Kathryn Haun (@katie_haun) March 22, 2022
Web3 has been a large focal constituent for task superior implicit the past 12 months. Although Web3 companies are said to beryllium moving connected the adjacent mentation of the decentralized internet, the conception remains vague and the manufacture down it is inactive successful its infancy.
Related: Investors pursuit Web3 arsenic blockchain manufacture builds contempt carnivore market
Huobi Global: Launches $1B fund
In June, crypto speech Huobi Global spun retired a $1 cardinal concern fund focused connected decentralized concern (DeFi) and Web3 projects. Dubbed Ivy Blocks, the caller money was designed to place and put successful “promising blockchain projects” crossed a scope of crypto sub-sectors. Specifically, Huobi Global volition absorption connected providing “liquidity investments” to assistance DeFi projects get up and running.
The DeFi assemblage deflated with the remainder of the cryptocurrency marketplace successful 2022, but dissimilar centralized exchanges, the assemblage was mostly resilient to contagion.
NBA Top Shot creator: $725M fund
Dapper Labs, the institution down CryptoKitties and NBA Top Shot, launched a $725 cardinal fund to enactment the improvement of its Flow blockchain. The money received backing from a scope of investors, including Andreessen Horowitz, Spartan Group and CoinFund. In summation to supporting the improvement assemblage already gathering connected Flow, the money is being utilized to lure developers from different blockchains specified arsenic Ethereum.
Although Dapper Labs has produced immoderate of the biggest nonfungible token (NFT) collections successful caller years, income person lagged different layer-1 ecosystems owed to weaker web effects and a smaller postulation of decentralized applications.
Dragonfly Capital: Launches $650M fund
Crypto VC Dragonfly Capital closed its 3rd backing circular successful April, raising $650 million to surpass its 2 erstwhile rounds of $100 cardinal and $200 million. The backing initiative, which was supported by Tiger Global, Sequoia China, KKR and Invesco, was higher than the $500 cardinal the institution initially declared arsenic portion of its Form D filing with the United States Securities and Exchange Commission. Dragonfly said the funds would beryllium utilized to put successful DeFi, metaverse and blockchain gaming startups.
Fireblocks: Raises $550M
Digital plus custody level Fireblocks saw its valuation surge successful January aft closing a $550 cardinal Series E backing round. The latest circular brought Fireblocks’ cumulative backing to $799 cardinal since 2019, arsenic VCs continued to backmost organization infrastructure solutions. Some of Fireblocks’ astir salient clients see Bank of New York Melon, Galaxy Digital and CoinShares. It besides served the present defunct BlockFi and Three Arrows Capital.
Binance Labs: Earmarks $500M for Web3 development
Blockchain incubation and late-stage maturation featured prominently successful Binance Labs’ $500 cardinal fund, which launched successful June. Binance CEO Changpeng Zhao said the funds would enactment task founders starring Web3 adoption crossed the DeFi, NFT, gaming, metaverse and societal sub-sectors. At the clip of its launch, Binance Labs’ money was already supporting 14 projects crossed the DeFi and societal concern sub-sectors.
Yuga Labs: $450M backing round
Although the NFT marketplace peaked successful 2021, VCs are banking connected the continued maturation of integer collectibles. In March, Bored Ape Yacht Club creator Yuga Labs closed a $450 cardinal backing circular astatine a valuation of $4 billion. Its backers included Andreessen Horowitz, Animoca Brands, MoonPay and, you guessed it, FTX.
Few sub-sectors mooned arsenic hard oregon arsenic accelerated arsenic NFTs during the erstwhile bull market. While this occurrence earned Yuga Labs a sizable concern circular successful March, NFT-focused companies volition conflict to support their valuations moving forward. As ConsenSys reported, NFT prices person fallen harder than galore different crypto assets, perchance indicating that caller usage cases request to look to support the manufacture from fading into oblivion.
Related: Fidelity plans NFT marketplace and fiscal services successful the metaverse
Polygon: $450M concern round
Sequoia Capital India and implicit 40 different task funds invested $450 million into layer-2 scaling solution Polygon. The institution said it would usage the funds to grow its scaling solutions to accommodate eventual mainstream adoption of Web3 applications. According to Polygon co-founder Sandeep Nailwal, Ethereum won’t supply capable scalability to enactment a Web3 future, adjacent aft its highly anticipated Merge took place.
Polygon’s backing circular closed successful February, a fewer months earlier the Terra ecosystem implosion triggered the archetypal sector-wide contagion successful crypto. Layer-2 protocols still person a agleam aboriginal arsenic the crypto assemblage moves past its scandal-ridden 2022 and attraction shifts backmost to development.
Multicoin Capital: $430M for caller startup fund
With crypto contagion successful afloat swing, Multicoin Capital successful July announced it had launched a $430 cardinal fund to enactment early-stage companies. The institution said it would allocate betwixt $500,000 and $25 cardinal to crypto startups and is prepared to put up to $100 cardinal successful larger projects. Multicoin indicated that its latest backing iniaitive would prioritize projects with “proof of carnal work,” oregon protocols that person created existent incentives for decentralization.
Framework Ventures: $400M raised
In April, crypto VC Framework Ventures launched “FVIII,” a $400 cardinal money devoted to Web3, blockchain gaming and DeFi. Half of the backing volition spell toward blockchain gaming projects, Framework Ventures said.
The absorption connected gaming whitethorn person been catalyzed by the occurrence of Axie Infinity, a fashionable play-to-earn crippled with millions of unsocial users. The maturation of metaverse and NFT exertion could besides beryllium affirmative drivers for the blockchain gaming industry.
Related: Pantera plans to rise $1.25B for 2nd blockchain fund: Report
Ava Labs: $350M successful caller funding
Ava Labs, the developer of the Avalanche blockchain, raised $350 cardinal successful April astatine a valuation of $5.25 billion. At the clip of the raise, Avalanche was 1 of the astir fashionable blockchains successful presumption of TVL, oregon full worth locked. Of course, that’s nary longer the lawsuit aft crypto and DeFi entered a heavy carnivore market.
Avalanche’s TVL presently sits beneath $800 cardinal aft peaking northbound of $12.2 cardinal successful December 2021, according to DeFi Llama.
Near Protocol: $350M backing round
In April, Tiger Global and FTX Ventures led Near Protocol’s $350 cardinal backing round. At the time, it was 1 of the largest superior raisesfor immoderate decentralized exertion platform. Proceeds were earmarked for supporting Near ecosystem growth, including expanding the fig of determination hubs crossed the globe. Near ended 2022 arsenic the 35th largest crypto task by marketplace capitalization.— Cointelegraph Research (@CointelegraphCS) September 12, 2022
Binance.US: $200M effect round
American crypto speech Binance.US attracted notable investors, including VanEck and Circle Ventures, successful raising $200 million astatine a pre-market valuation of $4.5 billion. Binance.US said the backing would spell toward expanding its merchandise features and operations crossed the United States. The institution appears to person made immoderate progress, having precocious rolled retired mobile payments to U.S.-based customers. The speech besides plans to get the assets of bankrupt crypto lender Voyager Digital for conscionable implicit $1 billion.