Backing Funds Is The New Holding Cash

May 27, 2022 • 5 Min Read

In a week very similar to last, venture capital money was heavily focused on backing new funds as opposed to investing in projects. Projects raised a total of $600 million, with CeFi projects getting the biggest share of the pie at $197 million. Infrastructure and DeFi followed up at $122 million and $111 million, respectively. Web3 and Metaverse/Gaming both raised $73 million, and NFT projects came in last with just $24 million.

In the retail investing world, we pad our bank accounts in anticipation of a market downturn. In the venture capital world, they pad each other’s funds. There were five new funds that finished raising, the biggest cat on the block being the famous $4.5 billion fund from a16z. The other funds raised $255 million collectively, bringing the total to $4.8 billion. Over the past month or so, new venture funds have been significantly outraising actual projects, indicating that investors and LPs have been using this time to build up war chests while still moving money instead of just sitting on cash.

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Deal of The Week

StarkWare is the developer of the StarkEx zero-knowledge (ZK) rollup engine and the StarkNet Layer 2 for apps or companies to use Ethereum more efficiently. The team raised $100 million in a Series D that quadrupled the ...

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