• Crypto startups raised $660 million in VC funding in December 2022 – down 21.5% from November (2022) and 82.5% from December 2021 ($3.76 billion).
• The number of crypto VC public investment projects in December 2022 was 50 – a 23% decline from November 2022 (65 projects) and a 68% decline from December 2021 (154 projects).
• Infrastructure crypto firms received the largest share of funding in December 2022, at about 22%. While CeFi, DeFi, and NFT/GameFi sectors accounted for about 8%, 18%, and 16%.
Crypto venture capital funding declined significantly in the month of December 2022, according to a report by Wu Blockchain. The total funding amount of crypto startup projects was $660 million, a decrease of 21.5% from the previous month and a massive 82.5% from the same period in 2021.
The number of crypto VC public investment projects in December 2022 was also drastically lower than the year before, with only 50 projects compared to 154 in December 2021. This marks a 23% decline from November 2022 (65 projects) and a 68% decline from December 2021.
The majority of the funding in December, around 22%, went to infrastructure crypto firms, while CeFi, DeFi, and NFT/GameFi sectors accounted for 8%, 18%, and 16% respectively.
Aztec Network was the most funded crypto firm in December 2022, receiving around $100 million for its Level 2 privacy solution using ZK Rollup. Fleek protocol and Web3 startup Nillion followed, with $25 million and $20 million in funding respectively.
In terms of the highest funding amounts, Haun Ventures topped the list with $1.5 billion, followed by Huobi Global with $1 billion and Flow ecosystem with $750 million.
The optimism surrounding non-fungible tokens (NFT) and decentralized finance projects in 2021 resulted in a record amount of venture capital investments into blockchain startups, with $25.2 billion. However, the collapse of firms like hedge fund Three Arrows Capital and the stagnation of the industry has led to a decrease in activity, as seen in December.