Amid the ongoing crypto market crash, Venture Capital firms were hit severely, resulting in market speculations about VCs pulling back from 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 has closed $65 million in Series A funding at a $1 billion valuation. According to the company’s press release, the funding round saw eminent VCs join investments, and Pantera Capital lead the raise. Following this, Unstoppable Domains highlighted that they aim to utilize the funding to facilitate the development of product innovation and expand partnerships in the web3 space.
“For too long, companies have controlled people’s digital identities, and Unstoppable Domains is putting that power back into the hands of people,” said Matthew Gould, Founder, and CEO of Unstoppable Domains. He added,
“As the digital economy becomes a larger part of our lives, it’s time for people to own their identity on the internet. We’re thrilled to partner with Pantera and other investors who share our vision of onboarding billions of people onto Web3 through NFT domains that unlock user-owned, private, and portable identities.”
2022 VC Crypto Investment May Surpass Last Year’s Record High
A recent report by Reuters pointed out — VCs have already invested $17.5 billion in crypto firms during the first half of 2022. In light of this, VC crypto investments are expected to surpass last year’s record of $26.9 billion.
“The current market conditions – I don’t think they faze investors,” said Roderik van der Graf, founder of Hong Kong investment firm Lemniscap, which focuses on crypto and blockchain. “The capital available is massive.”
On one hand, some VCs remain highly bullish on crypto investments. On the other hand, a recent report by Crunch base asserts that VC investments in crypto companies were down to just $9.3 billion in the first six months of 2022, as opposed to $12.5 billion in the first half of last year.