VC otherwise known as venture capital money are high end investors with a lot of extra capital to invest into various projects. One of those areas that often gets hit with these things is crypto. However it's been seeming a little quite as of late on this front as we don't really hear too much about VC funding of projects like we did back in 2021 during that bull run cycle.

That being said in a report I found we are seeing a increase in terms of dollars entering the space from VCs however it's more consolidated into fewer assets compared to random projects as we might have seen before.

The primary focus of this VC funding has been in these sectors

• Web3
• NFTs
• DAO tokens
• Metaverse
• GameFi

What we are seeing now is a bounce back to VC funding into projects but only a small increase in Q4 compared to what is has been during the bear market. In 2021 that VC funding was huge but only recently has been starting to climb again. This clearly shows us the VC funding is still a fraction of what it could be showing us that even with the major backing right now of positive notion for crypto many VCs and their funds are still staying on the side line.

Now remember the executive order trump signed for crypto is a 180 day window for them to figure out a game plan of how to even start going about things. That's 6 months from now before any real action would be taken from the government.

Primarily the money going in is web3/ntf/dao/metaverse and gaming but the next big section is Defi. Now both of these have had major investments from one party which kind of skews the results here.

This instead puts Infrastructure, trading/exchange/investing/lending and AI into areas of primary focus by most other VC money if you remove out the big single deals that have happened.

Start ups

What's clear though is investing is still mainly into startups for VCs which shows they are investing in projects to get to the next big 100x deal which let's be honest is something everyone always chases after. This primarily comes in the form of new startups for web3/nfts/dao and gaming while pretty much no VC money comes in late game. I think that should be a bit of a wake up call for Splinterlands that money is not going to come from VCs nor should it at this stage in the games growth.

The only categories where late stage VC money is going at the moment is DeFi, Mining, Data, Custody and Banking which all make sense being that adoption by government would mainly fuel these areas over the others.

Country

I think a big wake up call for crypto and the USA is that only 36% of all of the VC funding ended up coming from the USA while other countries held about 9%. That might not seem like a lot from another country but it actully is when you combine it all and see that the USA currently has far less than half of the funding even though it holds a vast amount of the dollar market share that would be invested in the first place.

I think it's also important to note that even though people get hung up on VC funding we had one of the biggest wild time for VC funding in 2021 and 2022 of which only account for roughly 50 billlion dollars. when you compare that to the now 3.5 trillion and growing market cap of crypto it's honestly a drop in the bucket. Mainly what you're getting out of this is where investors are parking their money as possible indicators of growth areas.

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