07-23-2022, 12:30 PM
Coinbase’s Deal Count Slumps 34% QoQ but Rises 68% YoY in Q2
<p>Coinbase Ventures (CBV), the investment arm of the cryptocurrency exchange, Coinbase, recorded a 34% decrease in its total deal count in the second quarter of 2022. </p><p>The total deal count dropped from 71 deals in the first quarter of this year to 47 deals at the end of June.</p><p>However, despite the dip, CBV said its posting in the just-ended quarter represents a 68% year-on-year (YoY) increase. </p><p>Coinbase Ventures disclosed these figures on Thursday in a blog post entitled ‘Coinbase Ventures Q2 Investment memo’. </p><p>According to Coinbase Ventures, which invests in early-stage cryptocurrency and blockchain startups, the YoY increase in its activities 'reflects the steady growth' of its venture practice over the past year.</p><p>Additionally, CBV noted that despite the quarterly dip, it continues to rank among the most active investors in the cryptocurrency industry. </p>
Source: Coinbase Ventures
<p>Coinbase Ventures explained: “The decline largely reflected the overall market conditions. With volatility in the markets, we saw many founders rethink or put their rounds on pause, particularly at the later stages. </p><p>“We’re seeing that many companies are foregoing a fundraise unless absolutely necessary, and even then, only if they feel confident that they can show the growth needed to justify a new round.”</p><p>Coinbase Ventures disclosed that the largest number of founding teams that it had invested in in the second quarter were from the United States.</p><p>It said the North American country accounted for 64% of the 356 companies in its portfolio.</p><p>However, it emphasized that Singapore, the United Kingdom, Germany and India are all growing innovation hubs.</p>Solana and Developers <p>Coinbase Ventures further explained that in the second quarter of this year, it invested in 10 ventures building on Solana, a public, open-source blockchain.</p><p>Moreover, the research arm of Coinbase observed the continued momentum from developers in terms of building on Solana. </p><p>It noted that various large funds have openly stated support for Solana, adding that the blockchain’s 'staying power is real'. </p><p>“While Ethereum and the Ethereum Virtual Machine remain king as far as developer traction and compatible apps [are concerned], we’re noting a clear trend in early teams placing importance on Solana,” Coinbase Ventures said. </p>CBV and Web3 <p>According to data from Coinbase Ventures, the Coinbase research arm invested the most in Web3 protocol and infrastructure (38%).</p><p>Investments in ventures centered on platform and developer tools (21%), non-fungible tokens/metaverse (17%) decentralized finance (15%) and international centralized finance (9%) also took portions in Coinbase Venture's investment chart in the second quarter.</p>
Source: Coinbase Ventures
<p>Coinbase Ventures in the blog post stated that it believes that third-generation web (Web3) gaming will champion the next massive wave of cryptocurrency users. </p><p>“Web3 gaming remained a sector of heavy investment in Q2, with The Block estimating that $2.6B+ was raised. Our activity over the last few quarters only strengthens our conviction,” the venture outlet explained.</p><p>Furthermore, Coinbase Ventures believes that experienced founders from Web2 gaming will continue to pour into the space. </p><p>It noted that while it will take some time for the sector to mature, “it’s growing increasingly clear that blockchain gaming will be a massive category in the future.”</p><p>“Expect an increased focus on sustainable economics and gameplay that infuses NFTs with more familiar Web2 gaming experiences,” Coinbase Ventures said. </p>Beyond Web2<p>Outside of gaming, CBV noted that it expects the next generation of Web3 user applications to free users from the restrains of the Web2 models.</p><p>Web3 user application will achieve this by giving users control over their audiences and communities, the Coinbase research extension explained.</p><p>“All told, we remain excited about Web3’s potential to reimagine entrenched Web2 models for social media, music, and more and ultimately return power to creators,” Coinbase Ventures said.</p>
This article was written by Solomon Oladipupo at www.financemagnates.com.
https://www.financemagnates.com/cryptocu...yoy-in-q2/
<p>Coinbase Ventures (CBV), the investment arm of the cryptocurrency exchange, Coinbase, recorded a 34% decrease in its total deal count in the second quarter of 2022. </p><p>The total deal count dropped from 71 deals in the first quarter of this year to 47 deals at the end of June.</p><p>However, despite the dip, CBV said its posting in the just-ended quarter represents a 68% year-on-year (YoY) increase. </p><p>Coinbase Ventures disclosed these figures on Thursday in a blog post entitled ‘Coinbase Ventures Q2 Investment memo’. </p><p>According to Coinbase Ventures, which invests in early-stage cryptocurrency and blockchain startups, the YoY increase in its activities 'reflects the steady growth' of its venture practice over the past year.</p><p>Additionally, CBV noted that despite the quarterly dip, it continues to rank among the most active investors in the cryptocurrency industry. </p>
Source: Coinbase Ventures
<p>Coinbase Ventures explained: “The decline largely reflected the overall market conditions. With volatility in the markets, we saw many founders rethink or put their rounds on pause, particularly at the later stages. </p><p>“We’re seeing that many companies are foregoing a fundraise unless absolutely necessary, and even then, only if they feel confident that they can show the growth needed to justify a new round.”</p><p>Coinbase Ventures disclosed that the largest number of founding teams that it had invested in in the second quarter were from the United States.</p><p>It said the North American country accounted for 64% of the 356 companies in its portfolio.</p><p>However, it emphasized that Singapore, the United Kingdom, Germany and India are all growing innovation hubs.</p>Solana and Developers <p>Coinbase Ventures further explained that in the second quarter of this year, it invested in 10 ventures building on Solana, a public, open-source blockchain.</p><p>Moreover, the research arm of Coinbase observed the continued momentum from developers in terms of building on Solana. </p><p>It noted that various large funds have openly stated support for Solana, adding that the blockchain’s 'staying power is real'. </p><p>“While Ethereum and the Ethereum Virtual Machine remain king as far as developer traction and compatible apps [are concerned], we’re noting a clear trend in early teams placing importance on Solana,” Coinbase Ventures said. </p>CBV and Web3 <p>According to data from Coinbase Ventures, the Coinbase research arm invested the most in Web3 protocol and infrastructure (38%).</p><p>Investments in ventures centered on platform and developer tools (21%), non-fungible tokens/metaverse (17%) decentralized finance (15%) and international centralized finance (9%) also took portions in Coinbase Venture's investment chart in the second quarter.</p>
Source: Coinbase Ventures
<p>Coinbase Ventures in the blog post stated that it believes that third-generation web (Web3) gaming will champion the next massive wave of cryptocurrency users. </p><p>“Web3 gaming remained a sector of heavy investment in Q2, with The Block estimating that $2.6B+ was raised. Our activity over the last few quarters only strengthens our conviction,” the venture outlet explained.</p><p>Furthermore, Coinbase Ventures believes that experienced founders from Web2 gaming will continue to pour into the space. </p><p>It noted that while it will take some time for the sector to mature, “it’s growing increasingly clear that blockchain gaming will be a massive category in the future.”</p><p>“Expect an increased focus on sustainable economics and gameplay that infuses NFTs with more familiar Web2 gaming experiences,” Coinbase Ventures said. </p>Beyond Web2<p>Outside of gaming, CBV noted that it expects the next generation of Web3 user applications to free users from the restrains of the Web2 models.</p><p>Web3 user application will achieve this by giving users control over their audiences and communities, the Coinbase research extension explained.</p><p>“All told, we remain excited about Web3’s potential to reimagine entrenched Web2 models for social media, music, and more and ultimately return power to creators,” Coinbase Ventures said.</p>
This article was written by Solomon Oladipupo at www.financemagnates.com.
https://www.financemagnates.com/cryptocu...yoy-in-q2/