As venture capital firms increase their interest in the area, concerns about a lack of talent to handle the aims of firms expanding in crypto and web3 are mounting.
According to a survey by Keychain Ventures and Cointelegraph Research, $14.6 billion was invested in the blockchain business in Q1 2022, maintaining a pattern that has seen total capital invested in this space climb each quarter since the start of 2021.
Furthermore, the survey found that the average dollar worth of each sale has climbed in the last three months, presently standing at roughly $32.3 million.
Individual deals increased as well, surpassing the previous high of almost 500 in Q1 2022. The trend is likely to continue as the field attracts fresh money from long-time venture capital firms in established markets like Bain Capital and Sequoia Capital.
The need for individuals and skills in the blockchain industry has been exacerbated by all of this capital expenditure.
Employees with the proper talents are growing tougher to find as more companies intend to expand, develop new products, and diversify their businesses.
This, on the other hand, gives an opportunity for those who want to work in the blockchain business.
Some firms, particularly in Africa, are leading the way in terms of teaching blockchain engineers, such as Web3 Student Developer Clubs in Kenya, which is providing blockchain development training to help the continent’s skilled talent pool increase.
Long-time crypto players including Coinbase, OpenSea, FTX, FireBlocks and Blockchain.com consolidated the sector through acquisitions.
In terms of industries, Web3 was the most appealing to investors in Q1 2022, while CeFi remains the least active in terms of deal volume and capital inflows across all sectors.
The following is a breakdown of the sectors in terms of deal volume:
- 26.5 percent Web3
- 23.2 percent DeFi
- 19.5 percent goes to infrastructure
- 18.3 percent NFT
- 12.5 percent CeFi
With 288 separate deals worth over $2.1 billion, pre-seed and seed rounds saw the most VC activity. Expansion rounds saw less activity, although about $5.8 billion in capital inflows were more than 2.5 times higher.
Don’t miss important articles during the week. Subscribe to blockbuild weekly digest for updates.we