From the top: 2022 fundraising insights

The purpose of this report is to provide an overview of the fundraising market in 2022. Whilst traditional markets have experienced a slump in recent quarters, due to well-documented events venture capital in crypto has suffered extensively. Sitting in between founders and investors as the world’s leading Web3 accelerator, Outlier Ventures has drawn upon extensive market research and its own insight to investigate the extent to which our industry has been affected. We present our findings in a report and here is a bullet-point summary:

  • The year started with massive enthusiasm: by 2Q22, the capital raised by funds was almost double what had been raised in the whole of 2021 ($19bn to $35.9bn).

  • The Terra/Luna crash (May-22) broke investors’ confidence in the market and FTX reinforced this sentiment further. From 1H22 to 2H22, there was a 55% decrease in the number of companies that closed rounds and 72% decrease in the capital raised.

  • The average capital raise across all categories and stages declined by 47%: from $28.6m in 1H22 to $15.1m to 2H22. Early stage startups (Web2 + Web3) on average saw valuations decline across all stages in 2022.

  • Average seed company valuations declined by 13.9% to $24m and average pre-seed valuations by 3.9% to $10m.

  • The number of token sales through 4 major exchanges (Binance, Coinlist, Republic and Tokensoft) as well as the amount of each raise in ($m) has fallen dramatically in H2 2022 versus H1 2022.

  • The amount raised has decreased by 91% from H1 to H2; while the no. of IEOs have decreased by 86% H1 vs. H2.

  • However, despite the slowdown we believe that there may still be significant dry powder available in the market, ~$26bn according to our estimates.

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