• Crypto startups raised $660 million in VC funding in December 2022, a decrease of 82.5% from December 2021.
• Infrastructure crypto firms received the largest share of funding in December 2022, at about 22%.
• Haun Ventures secured the highest funding of $1.5 billion in 2022.
The cryptocurrency and blockchain space saw a dramatic decrease in venture capital investments in December 2022. According to a report by Wu Blockchain, crypto startups raised $660 million in VC funding in December 2022, a steep decline of 82.5% from December 2021 ($3.76 billion). The number of crypto VC public investment projects in December 2022 was 50, a significant decrease of 68% compared to the 154 projects seen in December 2021.
This marked the lowest amount of venture capital investments in cryptocurrency and blockchain projects in the last two years, highlighting the current bearish sentiment in the space. Infrastructure crypto firms received the largest share of funding in December 2022 at about 22%, followed by CeFi and DeFi sectors at 8% and 18% respectively, and NFT and GameFi at 16%.
Aztec Network was the most funded crypto firm in December 2022, with a total of $100 million in funding. Aztec Network is a Layer 2 privacy solution using ZK Rollup, and is followed by Fleek protocol at $25 million, and Web3 startup Nillion at $20 million.
The highest VC funding for a crypto firm in 2022 was secured by Haun Ventures with $1.5 billion. Huobi Global took second place with $1 billion in funding, and Flow ecosystem came in third with $750 million in funding. Although venture capital investments in blockchain startups reached a record high of $25.2 billion in 2021, the dramatic decrease in December 2022 serves as a reminder of the volatile nature of the space.