Out of 5,997 overall agreements in the third quarter of 2022, 153 early and seed-stage deals involving the top 15 VC firms were monitored by Pitchbook’s Emerging Tech Indicator report.
Even while venture capital investments as a whole decreased in the third quarter, Decentralized Finance (DeFi) and Web3.0 were the main targets of early-stage startup funding from some of the top private investors, according to research company Pitchbook on Tuesday.
According to Pitchbook’s Emerging Tech Indicator report, firms that were focused on decentralized software projects and blockchain-based goods and services attracted the most capital with $879 million invested across 24 deals during the quarter. Web3 is a term used to describe the potential next phase of the internet.
The current quarter’s financing outlook has become less optimistic as cryptocurrencies struggle to recover from the shock of FTX’s abrupt fall earlier this month.
However, Pitchbook analysts pointed out that other parts of the bitcoin ecosystem are less vulnerable to trading activity and hence could be less affected by the consequences of FTX.
Analysts observed that fundraising for Mysten Labs ($300 million Series B) and Aptos Labs ($200 million Series A)—two new blockchain networks that may challenge existing giants like Ethereum and Solana—captured some of the largest deals in the industry.
According to Pitchbook, overall venture capital (VC) activity decreased for the third straight quarter, totaling $4.7 billion over 153 acquisitions, a 32% decrease from the second quarter’s $6.9 billion across 244 deals.
According to Pitchbook, two other popular VC investment sectors were financial technology, which attracted $737.4 million across 24 deals during the quarter, and biotechnology, which attracted $725.8 million across 11 deals.
Out of 5,997 overall agreements in the third quarter of 2022, 153 early and seed-stage deals involving the top 15 VC firms were monitored by Pitchbook’s Emerging Tech Indicator report.
