VC firms invested $14.2 billion in crypto in the first half of the year

While venture capital firms have invested a total of $14.2 billion in 725 deals in crypto in the first half of 2022, the big four accounting firm KPMG predicts investments will slow over the rest of the year.

Released by KPMG on Tuesday to the report According to the report, the biggest investments in the first half of the year were Germany-based crypto trading platform Trade Republic with $ 1.1 billion, digital asset storage platform Fireblocks with $ 550 million, crypto exchange FTX with $ 500 million and Ethereum software company with $ 450 million. It was ConsenSys.

Authors of the report, such as KPMG Global Fintech Lead Anton Ruddenklau, explained that the amount of investment made in just the first half of 2022 has already doubled all years before 2021. According to the report authors, this shows that the field is maturing rapidly and new technology and solutions are attracting investment.

However, Ruddenklau expects record-high investment to decline over the rest of the year.

VC firms invested $14.2 billion in crypto in the first half of the year
Global total investment activity (VC, PE and M&A) in blockchain and cryptocurrency. Source: KPMG.

This estimate of KPMG seems to be based on July data. The monthly value transferred to the blockchain venture capital market is 43 percent in July, according to Cointelegraph Research. decreased.

Ruddenklau expects the decline in interest and investment in crypto to be felt especially in retail companies offering coins, tokens and NFTs.

Alexandre Stachtchenko, Head of Blockchain and Crypto Assets at KPMG France, said that companies with sound risk management policies, a long-term vision and a strong cost and risk management approach will position themselves well to weather the bear market:

“Of course some companies will die, especially those without a clear and strong value proposition.”

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