Venture capital funding for crypto startups fell by 68% in a year

1891 trades raised $10,7 billion

26.12.2023 - 11:46

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Last updated on Aug 5, 2024

What’s new? The volume of venture capital funding for cryptocurrency startups in 2023 amounted to $10,7 billion, down by 68% compared to the 2022 total of $33,3 billion. The number of trades also fell by 32% to 1891. Meanwhile, 1299 of them came in initial funding rounds of up to $1 million.

The Block’s material

What else is known? Despite the drop in the indicator, the annual total is still ahead of previous bear markets. For example, crypto startups received only $6,4 billion in 2019-2020.

In terms of areas, the most popular, as last year, were NFTs and gaming, infrastructure, Web 3.0, DeFi, and cryptocurrency financial services. To a lesser extent, venture investors were interested in data analytics and trading projects. Most investor activity occurred in the first half of the year, followed by a decline.

Ethereum-backed Cyber Fund will allocate $100 million to projects at the intersection of blockchain, AI, and IoT

Since launching in 2014, the company has invested in 150 blockchain projects including Dfinity, Cosmos, Solana, LazyLedger (Celestia), EigenLayer, and Lido DAO

At the same time, November saw a significant surge in venture capital funding, with a 179% month-over-month increase to $1,2 billion raised in 92 rounds. The growth of the indicator coincided with the general recovery of the crypto market: its capitalization for the same period rose from $1 to $1,5 trillion. At the time of writing, it reached $1,73 trillion.

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