Venture capital firms poured $14.2 billion into crypto across 725 deals in the first half of 2022, but big four accounting firm KPMG predicts investments will likely slow for the remainder of the year.\u00a0<\/p>\n
According to a newly released KPMG\u00a0report<\/a>\u00a0on Sept. 6, the largest investments in H1 2022 came from German-based crypto trading platform Trade Republic ($1.1 billion), digital asset custody platform Fireblocks ($550 million), crypto exchange FTX ($500 million), and Ethereum software company ConsenSys ($450 million).<\/p>\n Authors of the report, including KPMG’s Global Leader of Fintech, Anton Ruddenklau, noted the investment figures for the first half of 2022 alone were already more than double all years prior to 2021, which \u201chighlights the growing maturity of the space and the breadth of technologies and solutions attracting investment.\u201d<\/p>\n However, Ruddenklau\u00a0said that over-investment during the record-breaking 2021 and first half of 2022, along with a looming potential recession, rising inflation, interest rates, and the Russia-Ukraine conflict would bring about a drop off in investment this year. <\/p>\n KPMG\u2019s prediction for a crypto investment downturn appears to already be borne out in data from July, with monthly inflows into the blockchain venture capital market declining 43% in the month,<\/a> according to Cointelegraph Research. <\/p>\n Ruddenklau expects the slowdown of crypto interest and investment to be particularly felt in retail firms offering coins, tokens, and NFTs. <\/p>\n Alexandre Stachtchenko the KPMG France Director of Blockchain & Crypto Assets, stated in the report that \u201cwell-managed crypto companies with healthy risk management policies, long-term vision, and strong cost and risk management approach\u201d will best position themselves to survive the current bear market.<\/p>\n \u201cOf course, some cryptos will die out \u2014 particularly those that don\u2019t have clear and strong value propositions. That could actually be quite healthy from an ecosystem point of view because it\u2019ll clear away some of the mess that was created in the euphoria of a bull market. The best companies will be the ones that survive.\u201d<\/p><\/blockquote>\n Stachtchenko added that financial institutions have become increasingly interested in blockchain infrastructure solutions and stablecoins to capitalize on the operational advantages of distributed ledger technology.<\/p>\n Related: <\/em><\/strong>Venture capital financing: A beginner\u2019s guide to VC funding in the crypto space<\/em><\/strong><\/a><\/p>\n KPMG also expects further investment efforts in underdeveloped fintech markets, particularly in Africa. <\/p>\n Efforts on this front have been made by crypto exchange Binance, which recently entered into early-stage talks with the Nigerian government to build a crypto-friendly economic zone<\/a> with the aim to generate long-term economic growth through digital innovation.<\/p>\n<\/div>\n![](\"https:\/\/s3.cointelegraph.com\/uploads\/2022-09\/80c43b42-e693-40dd-a2c9-e4bc0a6743ff.PNG\")