Venture Capital Investment Declined in May

03.06.2022 11:44
by Nina Petrov
2 min read

Even though VC investments in the sphere of cryptocurrency have almost doubled since last year, May has, unfortunately, not been the best month for crypto VC investors. There’s been a 38.2% decline in the overall amount of money invested, with the figure shrinking from $6.8 billion in April to $4.7 billion in May.

Most of the invested money went into infrastructure companies (21%). Decentralized finance (DeFi) startups received 14% of the pie, while centralized finance (CeFi) and non-fungible token (NFT) projects each received 13% of the overall sum.

The largest VC investment in May was a $650 million deal between Sam Bankman-Fried (founder of the prominent crypto exchange FTX) and the well-known brokerage platform Robinhood. Bankman-Fried is now the owner of 7.6% of Robinhood’s shares. Notable recent investments include projects such as Lithosphere (platform for cross-chain decentralized applications), and Xendit (a Southeast Asia-focused payment gateway solution), with the combined figure of $700 millions being invested in them. KuCoin (one of the largest crypto exchanges), and Chainalysis (a well-respected analytics company), gathered more than $150 million each.

The biggest source of venture capital investments at the moment is the USA, with Singapore and Hong Kong following.

Regardless of the overall decline in the invested amounts, industry analysts are not too concerned. They suggest that the decline happened because the investors are looking to play it safe, instead of investing into riskier ideas.

Author

  • Nina Petrov is a theoretical mathematician, passionate about new trends in the global economy and blockchain technology. She is a devoted content creator and editor, crypto-enthusiast and stock market analyst.

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