Has the FTX Mess Frozen Venture Capital Interest in Crypto?
It hasn't been a good year for blockchain-based startups. In addition to an asset price correction during a general downturn in venture capital, Web3-focused tech startups have also had to contend with a series of intra-industry crises that have occasionally made headlines in tech headlines. /p>
The Terra/Luna mess comes to mind. Just like the collapse of Three Arrows Capital. And that's not to mention the rapid downfall of FTX and its related entities.
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In the midst of all of the above, many people building or investing in blockchain-based assets and protocols have kept their heads held high. Evidence of this abounds - startups are still being created and scaled in the Web3 space and venture capitalists are still writing checks. Business as usual then, right?
Maybe.
It's worth remembering that in 2022, the rate at which venture capital dollars poured into web-focused companies3 - a broad term; I'm not trying to weigh in on the crypto-versus-bitcoin argument - has gone down this year. Crunchbase data reviewed by my alma mater Crunchbase News recently noted, for example, that after peaking in the fourth quarter of 2021, capital raised by companies dealing with cryptocurrency or blockchains has fallen each quarter. successive until the third quarter of 2022.
It hasn't been a good year for blockchain-based startups. In addition to an asset price correction during a general downturn in venture capital, Web3-focused tech startups have also had to contend with a series of intra-industry crises that have occasionally made headlines in tech headlines. /p>
The Terra/Luna mess comes to mind. Just like the collapse of Three Arrows Capital. And that's not to mention the rapid downfall of FTX and its related entities.
The Exchange explores startups, markets and money.
Read it every morning on TechCrunch+ or get The Exchange newsletter every Saturday.
In the midst of all of the above, many people building or investing in blockchain-based assets and protocols have kept their heads held high. Evidence of this abounds - startups are still being created and scaled in the Web3 space and venture capitalists are still writing checks. Business as usual then, right?
Maybe.
It's worth remembering that in 2022, the rate at which venture capital dollars poured into web-focused companies3 - a broad term; I'm not trying to weigh in on the crypto-versus-bitcoin argument - has gone down this year. Crunchbase data reviewed by my alma mater Crunchbase News recently noted, for example, that after peaking in the fourth quarter of 2021, capital raised by companies dealing with cryptocurrency or blockchains has fallen each quarter. successive until the third quarter of 2022.
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