Blockchain VC funding cut in half as crypto winter takes hold

Blockchain venture capital funding was cut in half in October, according to recent research.

Blockchain companies are seeing significant less capital inflow compared to previous months, according to a report released on Wednesday by Cointelegraph. The number of deals also dropped from 93 in a single month to 69 monthly in October.

According to Cointelegraph’s research team, October’s venture capital inflows plummeted 48.6% with $843.5 million in venture capital investment, down from $1.64 billion worth of financing in September. Despite this, there is still a significant degree of activity in the crypto venture capital space.

Uniswap Labs — the team behind the largest decentralized exchange (DEX), Uniswap — closed a $165 million Series B funding round in October. Blockchain development platform Tatum also received a $41.5 million capital injection in October while crypto custodian Copper raised $196 million in its ongoing Series C round.

Of all capital raised, 42% was propelling forward the Web 3.0 sector — with over $350 million raised in October. It was followed by 21.7% spent on infrastructure, 14.6% on decentralized finance, 13% on non-fungible tokens, 8.7% on centralized finance.