Cointelegraph Research Launches Venture Capital Database

Cointelegraph Research Launches Venture Capital Database

Despite generally negative price action across the cryptocurrency industry, continued venture capital investments in the space indicate that the industry is healthy and continues to evolve. Cointelegraph Research’s new venture capital database tracks the activity of venture capital firms and gives users access to the most important indicator of innovation and early-stage activity.

Macroeconomic factors have strangled the crypto economy in recent weeks and are fueling fears of a prolonged downturn. After the US Federal Reserve announced it would raise interest rates by 50 basis points, cryptocurrency prices plummeted. Then, on May 9, a black swan event hit the Terra ecosystem and the broader space as the TerraUSD (UST) algorithmic stablecoin lost its one-to-one peg to the US dollar.

However, venture capital investment in the sector appears to remain unchanged. Until now, in the second quarter of 2022, USD 6.8 billion has been invested in venture capital. This figure may remain on track to match the rebound seen in the previous quarter.

However, this should not be taken as an indicator of the imminent recovery of the cryptocurrency market. Venture capital firm investments and returns have historically shown extraordinarily weak correlations with both crypto and traditional assets. Depending on the stage of funding, it can take years for companies receiving investment to break even, despite the huge annual returns blockchain venture capitalists have recently achieved.

Venture capitalists are in it for the long haul when they finance a project, and private equity investment doesn’t strongly affect price movements of publicly traded assets. Instead, the activity of venture capital agents should be taken as a long-term indicator of the level of innovation in the space. The continued investment in startups working in Web3, decentralized finance (DeFi), infrastructure, and non-fungible tokens (NFTs) demonstrates that the blockchain industry is still a young and dynamic space, rapidly evolving to adapt to technical challenges.

Cointelegraph Research has built an industry-leading database documenting this evolution. It tracks all publicly announced venture capital funding rounds and contains over 5,000 records of blockchain venture capital deals made over the last 10 years.

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Get the venture capital database on the Cointelegraph Research Terminal

This data not only provides valuable information about the level of innovation and the future potential of the space, but also gives early clues about possible projects to invest in. Venture capitalists have a keen nose for promising technologies and are known for spotting promising projects long before their coins break the news and hit mainstream news.

Occasional triple-digit annual returns are strong proof of that. To start exploring private equity favorites and tap into our extensive deal database, visit the Cointelegraph Research Terminal. The venture capital database is available for preview and purchase along with cutting-edge industry reports on DeFi, NFT, GameFi, mining, and more.

Cointelegraph Research Launches Venture Capital Database

Some of the more notable venture capital deals that have already taken place this quarter are Indian cryptocurrency trading platform CoinDCX, which has raised $135 million in a series D funding round, with significant contributions from Pantera Capital and Steadview.

Stablecoin issuer Circle, which backs USD Coin (USDC), closed a $400 million round after partnering with big names in traditional finance. At the end of April, Near Protocol — a promising carbon smart contract blockchain that integrates with Ethereum, Polkadot, and Cosmos — has raised $350 million for its ecosystem. There are no clear signs that venture capital firm activity is slowing down, indicating that despite the current price uncertainty, the cryptocurrency space is not facing a winter of innovation.

This article is for informational purposes only and does not represent investment advice, investment analysis, or an invitation to buy or sell financial instruments. Specifically, the document is not a substitute for individual investment or other advice.

Investments in crypto assets are not regulated. They may not be suitable for retail investors and the full amount invested may be lost. The services or products offered are not aimed at or accessible to investors in Spain.