This year has been a difficult one for those who have been betting on cryptocurrency as the next big thing. Between the high-profile collapse of superstar crypto entities like FTX and scores of government bodies around the world announcing new regulations every day, it’s reasonable to assume that venture capital investors would be a bit more cagy about putting their money in crypto.
Reasonable or not, crypto has continued to outpace other emerging technology investments as recently as Q3 2022. According to the latest numbers released by Pitchbook’s Emerging Tech Indicator, Web3 and DeFi have continued to occupy the top investment area for VC funds, outpacing biotech and fintech. Although the total investments in the tech sector amount to just $4.7 billion, down a third from its high mark in the spring of 2022, other signs point to a possible rebound from the summer’s dismal figures.
“Web3 & DeFi topped the charts yet again, notching $879 million,” said Pitchbook’s analysts in their report. “Fintech and biotech followed close behind, while segments like insurtech and mobility gained little traction.” Furthermore, the report said, in an encouraging sign for the wider market, “The number of venture mega-deals is creeping back up to normal, with 10 ETI deals of $100 million or more recorded in Q3.”