Venture Capitals Invested $14.2B in H1 2022, Now Seeing a Decline

In the first half of 2022, venture capital companies invested $14.2 billion in cryptocurrency over 725 deals. However, big four accounting company KPMG forecasted that investments would likely decline for the rest of the year. As per the reports by KPMG, the highest investments in H1 2022 were by the German-based cryptocurrency trading platform Trade Republic ($1.1 billion), Ethereum software provider ConsenSys ($450 million), Cryptocurrency exchange FTX ($500 million), and Digital asset custody platform Fireblocks ($550 million). Highlights By The Authors The authors of the research, including Anton Ruddenklau, global leader of fintech at KPMG, highlighted that the investment projections for the initial half of 2022 alone were already more than twice all the years before 2021. The authors stated in the report that this underlines the rising maturity of the space and the range of technologies and solutions attracting investment. But according to Ruddenklau, excessive investment during the record-breaking 2021 and the initial half of 2022, as well as a potential recession, increasing inflation, higher interest rates, and the conflict between Russia and Ukraine, would cause investment to decline this year. Data from July suggests that KPMG’s forecast of a fall in crypto investment is already taking shape, with monthly inflows into the blockchain venture capital market falling 43% in the month. Ruddenklau predicts that retail bus...