Major players appear to be taking advantage of the bear market to buy as much as they can, according to a report by Cointelegraph Research and Keychain Ventures. However, the average deal size has declined over the past few months as venture investors have become more cautious.

According to the report, since Q1 2022, individual deal activity has increased by 19.9%. However, since April 2022, the rate has slowed. The average deal value also decreased by 16.5%, indicating that VCs are still open to funding initiatives, but with smaller sums of money.

The report also states that in Q2 2022, Web3 dominated practically all metrics. Seed round early-stage investments witnessed the most activity as usual, with $2.18 billion in total capital inflows. In the later-stage investment and expansion rounds, the Web3 industry also marginally outperformed DeFi and CeFi in terms of the number of individual deals.

In Q2 2022, the top 10 most active VCs began concentrating on Web3 rather than DeFi and NFTs in Q1 2022.

Web3 was the top capital allocation sector for 7 of the top 10 most active investors. In Q2 2022, these 7 investors allocated a total of 43% to 75% of their total investing activity.

In 2021 and Q1 2022, the top 10 most active VCs were responsible for 65% of all individual deals. The overall number of individual deals climbed to 621, which is 100 higher than in Q1 2022, however, this percentage decreased to a little over 42% in Q2 2022.

In Q2 2022, Web3 topped the VC funding interest with 43% of all individual agreements. With 16% of capital inflows, DeFi took a back seat, a significant shift from the previous five quarters.

Five acquisitions including GameFi, marketing, and education were a part of Animoca Brands’ portfolio. Animoca Brands entered in Q2 2022 with 72% of the capital concentrated on Web3 out of the 43 distinct agreements.

According to the report, the $2 billion investment raised by Epic Games, led by Sony and Kirkbi, to go towards its metaverse expansion plans, was the biggest deal in Q2 2022.

To find out more about how the Web3 sector is attracting investors despite the bear market, read more here.

Sourced from BitKE