Venture capital data thus far in the third quarter indicates that investment into blockchain-focused startups is on pace to contract dramatically compared to recent quarters and the heady 2021 period.
Data from Crunchbase and PitchBook indicate that after totaling around $10 billion in some recent quarters, the total dollar value of web3 investments could more than halve — with some datasets implying an even sharper fall when we compare Q3 2022 with earlier quarters of the same year.
The Exchange explores startups, markets and money.
Read it every morning on TC+ or get The Exchange newsletter every Saturday.
It’s canon in the blockchain world that rapid business cycles are part of the game, with periods of hype and spending followed by periods of lower consumer activity. A common perspective is that boom periods bring in new users for web3 products and related services while ensuing busts allow for quieter, building-focused work. Here’s how Coinbase described the pattern in its most recent earnings deck: