Amid the ongoing crypto market crash, venture capital firms have been hit hard, resulting in market speculation about VCs pulling out of crypto/blockchain investments, mirroring the broader tech markets. However, the latest turn of events may portray otherwise.
The Web3 digital identity platform, Unstoppable Domains, announced that it closed $65 million in Series A financing at a $1 billion valuation. According to the company’s press release, the funding round saw leading VCs join investments, with Pantera Capital leading the raise. Following this, Unstoppable Domains emphasized that they intend to use the funding to facilitate product innovation development and expand partnerships in the web3 space.
“For too long, companies have controlled people’s digital identities and Unstoppable Domains puts that power back in the hands of people.” said Matthew Gould, founder and CEO of Unstoppable Domains. He added,
“As the digital economy becomes a bigger part of our lives, it’s time for people to own their identities on the internet. We are excited to partner with Pantera and other investors who share our vision to onboard billions of people to Web3 through NFT domains that unlock user-owned, personal and wearable identities.”
2022 VC Crypto Investment Could Beat Last Year’s Record
A recent report from Reuters noted – VCs have already invested $17.5 billion in crypto companies in the first half of 2022. In light of this, VC crypto investments are expected to surpass last year’s record $26.9 billion.
“Current market conditions – I don’t think they are deterring investors”, said Roderik van der Graf, founder of Hong Kong investment firm Lemniscap, which focuses on crypto and blockchain. “The available capital is enormous.”
On the one hand, some VCs remain very bullish on crypto investments. On the other hand, a recent report from Crunch base claims that: VC investments in crypto companies fell to just $9.3 billion in the first six months of 2022, from $12.5 billion in the first half of last year.