Coinbase venture funding down 34% in Q2 of CY22

moneycontrol.com:

Crypto venture funding, which saw a record Q1 in 2022, witnessed the deal pace of Coinbase Ventures slowdown in the second quarter, with the total count decreasing 34 percent, from 71 to 47. Coinbase Ventures is the venture capital arm of crypto exchange Coinbase.

According to data released by The Block, venture funding in the blockchain sector declined 22 percent, from $12.5 billion to $9.8 billion. Before this decrease, investment had increased for seven consecutive quarters.

A quarterly investment report released by Coinbase Ventures shows that despite the slowdown compared to the fervent pace of late CY21 and Q122, Q2 activity still increased 68 percent YoY, indicating overall growth in its venture practice.

The decline in venture funding activity was attributed to the volatility in markets, which saw many founders rethink or put their rounds on pause, particularly at the later stages. “We’re seeing that many companies are foregoing fundraise unless absolutely necessary, and even then, only if they feel confident that they can show the growth needed to justify a new round,” the investing arm of Coinbase said.

Web3 gaming will on board next wave of crypto users

While the overall environment has been negative, Coinbase Ventures is still interested in certain projects, as evident from its investments in Web3/protocol infrastructure, which got 38 percent of the VC's total investment and Platform & Developer Tool, which accounted for 21 percent.

“With an estimated more than 3.2 billion gamers in the world, we strongly believe that Web3 gaming will on board the next massive wave of crypto users. Web3 gaming remained a sector of heavy investment in Q2, with The Block estimating that over $2.6 billion was raised,” Coinbase