Venture capital: $3.2 billion for crypto companies

Venture capital (VC) investments in crypto and blockchain companies increased in the second quarter, according to a report from Galaxy Digital.

According to the report, venture capitalists invested a total of $3.2 billion in the sector between April and June. This is an increase of 28 percent compared to the first quarter, despite a decline in the number of investments (about 4 percent).

A large proportion of the investments were made at early stages (78 percent). 20 percent went to so-called late-stage investments, supporting more mature companies. Mostly investments were made in projects in the areas of Web3, NFT, DAO, Metaverse and Gaming. These sectors made up a total of 24 percent of all investments.

Interestingly, the average investment grew to $37 million per deal. Only in the fourth quarter of 2021 (at the height of the bull market) was this figure higher.

53 percent of the money went to crypto companies in the U.S. - up 23.5 percent from the previous quarter. This was followed by the United Kingdom (12.8 percent), Singapore (4.6 percent) and the United Arab Emirates (4.4 percent).

Galaxy is one of the largest venture capitalists in the crypto world. To financially support young start-ups, the company set up its own fund in April.