Original author: flowie, Xi Angxiang, ChainCatcher

Table of contents:

1. Overview of the encryption market in 2022

2. Fundraising situation of crypto venture capital funds in 2022

3. Project financing in 2022

• Analysis of the number and amount of financing in each track

• Top 10 projects with annual financing amount

Investment agency

• Investment agency

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V. Conclusion

1. Overview of the encryption market in 2022

"Encryption winter" is the key word in 2022, and this chill is passed on step by step.

In terms of the macro environment, global inflation in 2022, central banks of various countries have launched monetary tightening policies, and the Federal Reserve’s aggressive interest rate hikes will cause all asset classes to respond in terms of prices: stock markets, money markets, and government bonds in various countries around the world have fallen sharply; The inversion of the 10-year U.S. Treasury yield continued to record highs; the Nasdaq, which is dominated by technology stocks, continued to fall.

The encryption industry attracts excessive speculators, and its leverage ratio is higher than that of traditional industries. Therefore, in the context of global capital tightening, the process of deleveraging is more violent.

Source link:

Source link:https://www.coingecko.com/en/global-charts

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Source link:https://www.coingecko.com/en/global-charts

Source link:

Source link:https://www.coingecko.com/en/global-charts 

In the NFT field, as the market continues to cool down, NFT trading volume is still in a downturn. The ultra-high transaction volume in May 2022 is mainly due to the FOMO sentiment induced by the issuance of otherdeed on the otherside. Looking at 2022, the total market value of NFT will drop from approximately US$35 billion to US$21 billion, a drop of more than 40%.

Secondly, in the context of the continued bearishness of the secondary market, there will be many negative risk events in the encryption market in 2022. We have witnessed a number of crypto giants fall like dominoes: Terra, Three Arrows Capital, Voyager Digital, Celsius, FTX, BlockFi... and for now, the list is still growing.

The decline of the macro environment, the deep bearishness of the secondary market, and multiple black swan events have rapidly reduced the confidence in the investment and financing market of the encryption industry. The Luna crash in mid-2022 has also become an important "watershed" in the investment and financing market. In the first half of this year, the entire venture capital market basically continued or even surpassed the bull market performance in 2021, but in the second half of the year, the heat turned sharply. Both the institutional fundraising end and the investment and financing market slowed down, and this decline may continue until 2023 the first half of the year.

What is the pace of investment in the crypto investment and financing market in 2022, and where are the funds going? According to encrypted data platformRootdatafirst level title

2. Fundraising situation of crypto venture capital funds in 2022

In terms of fundraising, the bullish performance of the encryption market in 2021 has allowed a lot of funds to enter the encryption market in early 2022. In the first two quarters of the 2022 encryption venture capital market, fundraising has increased significantly. In the first quarter of 2022, there were 54 fundraising transactions, a year-on-year increase of 500%, and the total amount of funds raised was 11.723 billion US dollars, a year-on-year increase of 2245%. In the second quarter of 2022, there were 96 fundraising deals, a year-on-year increase of 500%, and the total amount of funds raised was US$24.193 billion, a year-on-year increase of 635.12%.

However, with the advent of the bear market, a series of thunderstorms such as Luna and Three Arrows Capital frequently occurred in the middle of the year, and the performance of investment institutions was also questioned, and the strong fundraising momentum was quickly curbed. In the third quarter of 2022, the number of funds raised and the total amount of funds raised will usher in a cliff-like decline. The number of funds raised is 54.16% lower than that of the second quarter, and the total amount of funds raised is 25.43% lower than that of the second quarter.

By the end of 2022, the FTX black swan event will appear, with Sequoia Capital, Paradigm, Temasek, Multicoin and other top funds investing in the field of encryption hundreds of millions of dollars invested in zero, and the reputation of encryption investment institutions will be severely damaged, basically few With upstream funds allocated to the encryption market, fundraising activities in the fourth quarter basically stagnated, with almost only one fundraising event, with a total fundraising amount of US$150 million.

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Data source: Messari

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3. Project financing in 2022

This report counts 1528 investment and financing events in DeFi, CeFi, infrastructure, games, NFT, social entertainment, DAO, tools & information services and others in 2022.

In 2022, the cumulative public financing amount of the encryption industry will reach 26.77 billion US dollars, and the number of financing transactions will be 1528, which is a decrease of 4.5% and an increase of 28% respectively compared with 2021. There were 57 mergers and acquisitions in the year, 10 of which announced the acquisition amount, totaling USD 1.64 billion.

In Q1 of 2022, the crypto investment and financing market continued the record of over US$10 billion in single-quarter investment and financing since Q4 of 2021 with a total financing of US$11.686 billion. 5 consecutive months of positive growth or flat record, this is an unprecedented golden age of crypto investment.

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Data Sources:Rootdata

It can be seen from the subdivision of investment and financing rounds that the distribution of financing rounds of encryption projects is basically similar to that in 2020 and 2021, and it is still concentrated in the early stages such as angel rounds, pre-seed rounds, and seed rounds. , NFT and DeFi fields are the most obvious. The proportion of projects in these three fields that received early financing accounted for 68%, 65% and 63% respectively. It can be seen that they are still in the stage of vigorous development and the industry structure is far from solidified.

In 2022, which tracks will the crypto venture capital funds mainly flow into? How has it changed from 2021?

From the perspective of the distribution of investment and financing fields, the top three fields in 2022 are infrastructure (252 deals), games (213 deals), and DeFi (193 deals), accounting for 16.49% and 13.94% of the total number of financing deals respectively. %, 12.63%; the top three areas in terms of total financing amount are infrastructure (US$7.565 billion), CeFi (US$5.68 billion), and NFT (US$3.456 billion), accounting for 28.20%, 21.22%, and 12.92% of the total financing scale respectively. % .

Compared with 2021, the total amount of financing and the total number of investment and financing events of each track in 2022 will have a relatively high growth rate, and most of the growth rates will exceed 50%. Among them, the number of financing and the amount of financing both showed a relatively rising trend. Infrastructure, NFT, social entertainment, tools & information services, the number of financing transactions increased by 19.4%, 68.2%, 134.2%, and 125% year-on-year respectively, and the financing amount increased year-on-year respectively 82.3%, 181.32%, 265.2%, 78.5%.

In addition, there are 63 financing events in 2022 with a single financing exceeding US$100 million, and many of these projects have obtained large amounts of hundreds of millions of US dollars through continuous financing. Among them, Animoca Brands has raised a total of US$544 million in three rounds of financing, Amber has raised a total of US$500 million in two rounds of financing, NEAR Protocol has raised a total of US$500 million in two rounds of financing, Aptos has raised four consecutive rounds of financing, and disclosed two of the financing amount. Sui has raised a total of US$350 million in rounds of financing, and Sui has raised a total of US$315 million in two rounds of financing.

In 2022, the most favored by leading funds, and large-scale financing projects are mainly concentrated in the infrastructure field (including infrastructure tracks including Layer 1, Layer 2, developer platforms, wallets, middleware and other subdivision tracks), of which more than 1 There were 19 financing events of USD 100 million, mainly focusing on the public chain and the expansion track. In addition to Polygon’s US$450 million financing at the beginning of the year in the last round of new public chain narratives, many upstarts on this track have completed substantial financing, such as Aptos’ two rounds of financing totaling US$350 million, Sui’s US$200 million in financing, zkSync’s 2 million dollars etc.

However, NFT, which became popular in 2021, will still maintain a strong momentum in the downturn of 2022. There are 12 events in the NFT field that have completed more than US$100 million in financing, and they are mainly concentrated in the mid-to-late stage of the top projects. Typical financing projects include Animoca Brands (a total of US$544 million in three rounds of financing), Yuga Labs (US$450 million), Opensea ($350 million), Dapper Labs ($305 million.)

In social entertainment and tools & information services, both the number of financing and the amount of financing have increased significantly. Social entertainment (has always been regarded as one of the content portals for Web3 to break through user growth. In 2022, social entertainment content such as "decentralized social networking", "Web3 social network", and "Web3 music" will be a hot topic, and soul Binding and other hot new concepts. With Elon Musk’s high-profile acquisition of Twitter, the hot discussion about Web3 social networking has once again been pushed to a climax. However, because the track is still in the early stage of development, the direction is relatively vague, and there is no high-growth trend. Platform, social entertainment track in 2022 Social entertainment investment projects are mainly concentrated in the seed round stage, with 56 transactions, and there are few large-scale financings. Typical financing events include the decentralized social protocol Farcaster completing a $30 million investment led by a16z financing.

In the field of tools & information services, the investment projects are mainly concentrated in the seed round stage, with a total of 53 projects. The subdivision track related to encryption data & analysis is the most active in investment and financing, with 36 financings, accounting for 36.73% of the total financing in this field. Among them, the blockchain data analysis company Chainalysis (1.7 billion), cryptoasset software company Lukka ($110 million). In addition, with the successive thunderstorms of several leading projects this year, the financial and taxation, accounting and other tool platforms or solutions related to encryption projects have also attracted a first-level investment boom, and well-known institutions such as Tiger Global and Sequoia Capital have entered the market.

Although the number of financing transactions in CeFi, DAO, and games has increased slightly, the amount of financing has dropped significantly, decreasing by 54.2%, 17.2%, and 46% year-on-year, respectively. In the DeFi field, both the number of financing transactions and the financing amount decreased slightly, down 27.2% and 9.3% year-on-year respectively.

Before the thunderstorms in the CeFi field, Luna, Celsius, etc. in the middle of the year, the top CeFi players represented by FTX, Amber, etc. were in the limelight, and they successively completed a number of large-scale financings of over 100 million yuan. However, in the third quarter, this momentum basically faded , the number of financing and the amount of financing both fell sharply. With the collapse of FTX, many related CeFi institutions have reported crises one after another, and the financing in the CeFi field in the fourth quarter is still relatively sluggish. The maturity of the CeFi track is relatively high, with 38 projects in the early stage and 33 in the A round of investment projects, and the proportion is relatively balanced. The most active vertical field of the CeFi track is the exchange, and other popular ones include payment, market maker, savings, asset management, etc.

Although after the setback of CeFi, Uniswap, dYdX and other top DeFi protocols worked well in various crashes, and the market generally believes that DeFi will attract a new wave of dividends, but there will be no major innovative protocols in the DeFi field in 2022, and there will be no major innovations in the primary market. There is a new round of financing boom, and only Uniswap has completed a financing project of more than 100 million US dollars, which completed a financing of 165 million US dollars in October 2022.

Compared with the steady development of NFT, blockchain games, which also became popular in 2021, will significantly weaken in 2022. Under the situation that the top projects Axie and STEPN have been severely frustrated and questioned, there is no phenomenon similar to Axie and STEPN A level new concept game project was born. Although there is a slight enthusiasm for investment in projects surrounding concepts such as 3A-level blockchain games, NFT games, and Metaverse, judging from the sharp drop in the total amount of financing, it is obvious that investment institutions are more cautious in placing bets in this field.

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infrastructure

infrastructure

The infrastructure track includes Layer 1, Layer 2, developer platforms, wallets, middleware and many other fields. In 2022, there will be 252 investment and financing events in the infrastructure field, raising a total of 7.55 billion US dollars in funds, ranking first among all tracks in terms of scale. The number of financing events increased by 19.4% year-on-year, and the total amount of funds increased by 82.3% year-on-year. From the perspective of financing rounds, in 2022, there will be 115 infrastructure investment projects in the early stage and 48 in the A round.

DeFi

The DeFi track includes DEX, lending, asset management, yield generator, stable currency, etc. There will be 193 investment and financing events in the DeFi field in 2022, raising a total of US$1.65 billion. Financing events increased by -27.2% year-on-year, and total funds increased by -9.3% year-on-year. The number of DeFi investment projects is mainly concentrated in the seed round stage, with 110 projects.

CeFi

There will be 128 investment and financing events in the CeFi field in 2022, raising a total of US$5.68 billion, ranking second among all tracks. Financing events increased by 7.6% year-on-year, and total funds increased by -54.2% year-on-year.

NFT

game

game

There will be 213 investment and financing events in the game field in 2022, raising a total of US$1.61 billion. Financing events increased by 80.5% year-on-year, and total funds increased by -46.0% year-on-year. The investment projects in the game field are mainly concentrated in the seed round, with a total of 113 projects.

DAO

There will be 35 investment and financing events in the DAO field in 2022, raising a total of 270 million US dollars, a year-on-year increase of 25% in financing events, and a year-on-year increase of -17.2% in total funds. DAO received investment projects mainly concentrated in the seed round stage, with 12 projects.

social entertainment

There will be 89 investment and financing events in the social entertainment field in 2022, raising a total of US$840 million. The number of financing events increased by 134.2% year-on-year, and the total amount of funds increased by 265.2% year-on-year. Social entertainment investment projects are mainly concentrated in the seed round stage, with 56 projects.

Tools & Information Services

other

other

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source:Rootdata

The 10 projects with the highest single financing amount in the encryption field in 2022 are public chain Terra ($1 billion), digital asset custody platform Fireblocks ($550 million), Ethereum infrastructure development company ConsenSys ($450 million), BAYC Development Yuga Labs ($450 million), Ethereum scaling project Polygon ($450 million), crypto exchange FTX ($400 million), crypto exchange FTX US ($400 million), Web3 gaming software company and venture capital firm Animoca Brands ($358 million), green mining company Crusoe Energy ($350 million), public chain NEAR Protocol ($350 million), Flow developer Dapper Labs ($305 million).

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4. Active investors in 2022

For the top funds with sufficient funds, compared with being "on the bus" under the FOMO sentiment in the bull market, the encryption market in the bear market gradually de-bubbles and returns to its essence, and project valuations also return to rationality. Perhaps it is more reasonable to invest good time.

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source:Rootdata

Among them, the investment of more than 100 isCoinbase Ventures（119 ）、Animoca Brands(118). Coinbase Ventures has significantly accelerated the pace of investment in 2022. Since 2018, the cumulative number of investments has been 259. In 2022, it has made a large-scale attack, making 119 shots, accounting for nearly half of the total number of investments. In terms of investment distribution, Coinbase Ventures’ investment fields are mainly concentrated in the infrastructure and DeFi fields, accounting for 30% and 24% of the investment respectively. Judging from the amount of single project financing, only Yuga Labs ($200 million), Sui ($300 million), Aptos and Layer Zero ($135 million), and Gnosis Safe ($130 million) have participated in projects exceeding $100 million this year. billion US dollars) five projects.

However, Animoca Brands will invest 118 deals in 2022. In its investment territory, games are always the core of Animoca Brands. In terms of quantity, games account for more than 60% of all its investment projects this year, exceeding US$100 million. There are 6 projects in financing, namely Yuga Labs ($450 million), Polygon ($450 million), football media platform OneFootball ($300 million), Web3 game service provider Immutable ($200 million), cricket NFT platform Rario ($120 million), cross-chain infrastructure LayerZero ($135 million).

Shima Capital (88 ), GSR (76 ), Spartan Group (63 ), Dragonfly (61 ), Alameda Research (59 ), Solana Ventures (59 ), a16z (56 ), and Jump Crypto have more than 50 investments (55).

Among them, a16z, the top venture capital with a large asset scale, has a relatively balanced distribution of investment fields, and the number of shots in each field is not very different, mainly in the fields of infrastructure, NFT, and games. In the investment stage, a16z prefers well-developed encryption start-ups. In 2022, a total of 57 shots will be made, and among them, projects with an investment amount of more than 100 million US dollars include Yuga Labs, Aptos, Sui, LayerZero, and the centralized wireless hotspot network Helium and other 18 projects, accounting for nearly 30% of the total number of investments, far exceeding Coinbase Ventures and Animoca Brands, and many large-scale projects participated in the investment are in the public chain and expansion track.

The number of investments is second only to Coinbase Ventures and Animoca Brands' crypto-native fund Shima Capital, which was established in 2021 with 86 investments, mainly focusing on early-stage projects. Nearly 80% of the year, there is no financing project with an investment of more than 100 million US dollars. GSR, an encrypted market maker established in 2013, has 76 investments, most of which are early and mid-term projects in the investment stage. In 2022, the financing projects with a financing value of less than 10 million US dollars accounted for nearly 64% of the whole year, and the investment and financing amount exceeded 100 million projects. There are 2, including Gnosis Safe ($100 million) and Terra, which will thunder in 2022 ($1 billion after listing).

Founded in 2018, Spartan Group, a crypto-native fund, mainly invests in DeFi, infrastructure and games. The investment stage is relatively early. In 2022, the financing projects with a value of less than US$10 million accounted for nearly 64% of the year. The only project with more than 100 million investment and financing amount is Polygon (450 million US dollars). Founded in 2018, Dragonfly, an encrypted native fund, mainly invests in DeFi, infrastructure and CeFi. In terms of investment stage, projects with a financing amount of more than 100 million in 2022 include the Ethereum expansion plan zkSync / Matter Labs (200 million USD), NEAR Protocol (two rounds of financing, USD 350 million/USD 100 million), and Polygon (USD 450 million).

Solana Ventures, which mainly invests in the Solana ecology, mainly invests in DeFi and games. The investment stage is relatively early. In 2022, the financing projects with a value of less than US$10 million accounted for 73% of the year. Jump Crypto's 2022 investment and financing projects with more than 100 million dollars include Sui (300 million U.S. dollars), Aptos (150 million U.S. dollars), and crypto exchange Kucoin (150 million U.S. dollars).

Overall, top funds prefer to inject funds into the infrastructure, DeFi and gaming fields, especially the public chain and expansion tracks have almost become tracks that top funds dare not miss.

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source:Rootdata

Among them, the most active angel investorsBalaji Srinivasan With 44 shots, Balaji Srinivasan, former CTO of Coinbase and General Partner of A16z, was an early investor in many successful tech companies and crypto protocols including Alchemy, Ava Labs, Bitcoin, Cameo, Chainlink, Clubhouse, Dapper Labs, Ethereum, Instadapp, NEAR Protocol, OnDeck, Opensea, Solana, Soylent, Superhuman, Synthesis, and Zora. Balaji Srinivasan has also started businesses many times. The three companies he founded, Earn.com, Counsyl, and Teleport, were acquired by Coinbase, Myriad, and Topia respectively. In addition, Balaji Srinivasan is also the creator of the concept of "network country".

In 2022, Balaji Srinivasan will mainly invest in the fields of tools & information services, infrastructure, and DAO. Among the investment projects, there are 5 projects with a financing amount of more than 20 million US dollars, namely the modular blockchain Celestia (50 million US dollars), Web3 Data index Nxyz ($40 million), decentralized social Farcaster ($30 million), decentralized trading platform Hashflow ($26 million).

V. Conclusion

V. Conclusion

In general, the market bubbles and hidden risks accumulated under the bull market in 2021 will be punctured in 2022. With the successive bankruptcy of encryption giants, many mainstream encryption investment institutions have paid a heavy price for this, and the investment and financing rhythm of the encryption market is growing rapidly. Slow down, and funds will favor the flow of encrypted "new infrastructure" with long-term value.

Judging from the investment and financing situation in 2022, infrastructure (including infrastructure tracks including Layer 1, Layer 2, developer platforms, wallets, middleware and other subdivided tracks), NFT, Web3 social entertainment, and data analysis are relatively popular. There is a high probability that the popularity will continue in 2023.

It is worth mentioning that industries related to Bitcoin payment technology and Lightning Network are getting attention in 2022. Although the financing amount is far less than infrastructure, NFT and other projects, it is still worthy of continued attention in 2023.

So, how do other authorities predict trends in 2023?

As usual, analysis and venture capital institutions such as a16z, Messari, and Pantera have made their own predictions on investment trends in 2023. Among them, a16z mentioned that the mobile terminal of blockchain, multi-party computing, zk technology-related projects and development will receive continuous attention. Messari expects that the encryption infrastructure in 2023 will continue to be popular in 2022. In addition, due to frequent security incidents on the chain in 2022, security audit companies will continue to obtain financing. Messari is bearish on the over-hyped GameFi.

Messari founder Ryan Selkis himself prefers decentralized social networking (DeSoc). Pantera Capital partner Paul Veradittakit mentioned zk technology,