This month, there were 169 crypto-related venture capital investment initiatives, comprising 170 rounds.
According to the Crypto Fundraising Database Dove Metrics, total venture capital funding in crypto fell around 38%, from $6.8 billion in April to $4.7 billion in May.
Despite the fact that a significant amount of capital poured into cryptocurrency is failing, the numbers this year are more pleasing. For instance, in May, the amount of capital invested in crypto jumped around 90%.
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Saurabh Sharma, head of investments at Jump Crypto, the cryptocurrency division of Jump Trading Group, commented on the significance of VC funding and the situation in the crypto market:
“Generally, there is a big difference between people who are at the surface of understanding this space — those funds might take a backseat — but true crypto-native funds with conviction will continue to invest heavily."
On top of that, data taken from investment distribution displayed that infrastructure firms accounted for 21%, decentralized finance (DeFi) startups for 14%, whereas non-fungible token (NFT) initiatives and centralized finance (CeFi) - 13%.
While looking at the findings of Dove Metrics, it seems as though a number of VC funds are more likely to invest in breakthrough technologies that represent innovation and might help the crypto ecosystem in the near future.
For instance, Robinhood, an American financial services company located in California, managed to raise a total of $600 million for centralized finance (CeFi). On top of that, next in line was an Indonesian-based unicorn founded in 2016 dubbed Xendit which raised $300 million for infrastructure.
Other significant investments include analytics company Chainalysis and crypto exchange KuCoin which raised more than $300 million combined.
Andreessen Horowitz (a16z), an American-based private venture capital firm, also stood out with its huge $4.5 billion fund to support Web3 startups at every stage. The company also allocated $1.5 billion to seed investments and $3 billion to venture injections.
Back in May, an American-based private venture capital firm Fasanara also launched a significant $350 million fund to discover the next generation of digital institutions and investors in digital assets.
