In August, financing for blockchain startups hit a 12-month low.

Private finance is still being negatively impacted by the cryptocurrency market slump, but one fund is optimistic about Web3’s future.

According to data, $1.36 billion in venture capital was invested in the blockchain sector in August 2022, which is a 12-month low and the fourth consecutive month-over-month fall in capital inflows. The inflows in August were down 31.3% from the $1.98 billion in July, while the 101 agreements that were completed in August had an average capital investment of $14.3 million, which was down 10.1% from July. The data includes in-depth information on transactions, M&A activity, investors, crypto businesses, and funds.

The financing for August prioritized Web3, NFTs, and infrastructure.

Web3, infrastructure, and nonfungible tokens (NFTs) accounted for more than $1.16 billion, or 85.4%, of the total capital invested in August. These are some of the largest transactions: Limit Break, a maker of web-based games, raised $200 million. FC Barcelona’s Web3 division, Barca Studios, received $100 million from Chiliz, the company behind the blockchain-based fan incentives program Socios. Ready Player Me, a website where users may design avatars for the metaverse, has secured $56 million in a Series B fundraising round that was spearheaded by Andreessen Horowitz. A $50 million Series A investment was headed by Section 32 and Intel Capital and raised for Inworld AI, a developer platform for building AI-driven virtual characters.

Despite the state of the market, CoinFund is positive.

Additionally, venture capital firms have started raising money. A new $300 million fund to support early-stage entrepreneurs was formed by Web3 and the cryptocurrency-focused venture capital company CoinFund, underscoring their confident expectation that Web3 would “continue to advance through all market cycles.” The Algorand Foundation and Near contributed $80 million to Orange DAO, which is expected to keep expanding as a decentralized autonomous organization supporting cryptocurrency companies with an investment-focused focus. Shima Capital, meanwhile, unveiled a $200 million debut capital vehicle to aid developing digital asset businesses.

For a thorough examination of the blockchain VC market in August. The research team pulls down the most important information from the major industrial sectors, including venture capital, as well as the top market-moving events from the previous month.

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