Venture capital data thus far in the third quarter indicates that investment into blockchain-focused startups is on pace to contract dramatically compared to recent quarters and the heady 2021 period.
Data from Crunchbase and PitchBook indicate that after totaling around $10 billion in some recent quarters, the total dollar value of web3 investments could more than halve — with some datasets implying an even sharper fall when we compare Q3 2022 with earlier quarters of the same year.
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It’s canon in the blockchain world that rapid business cycles are part of the game, with periods of hype and spending followed by periods of lower consumer activity. A common perspective is that boom periods bring in new users for web3 products and related services while ensuing busts allow for quieter, building-focused work. Here’s how Coinbase described the pattern in its most recent earnings deck: