The decline in venture funding activity was attributed to market volatility, which caused many founders to reconsider or postpone their rounds, particularly in the later stages.
Crypto venture funding, which saw a record Q1 in 2022, saw Coinbase Ventures’ deal pace slow in the second quarter, with the total count decreasing 34%, from 71 to 47.
Coinbase Ventures is the venture capital division of the cryptocurrency exchange Coinbase.
According to The Block data, venture funding in the blockchain sector fell 22%, from $12.5 billion to $9.8 billion. Prior to this drop, investment had risen for seven consecutive quarters.
According to Coinbase Ventures’ quarterly investment report, despite a slowdown compared to the fervent pace of late CY21 and Q122, Q2 activity increased 68 percent year on year, indicating overall growth in its venture practice.