CoinVoice recently learned that on October 9, Bloomberg cited data from research firm PitchBook showing that global venture capital investment in cryptocurrency startups in the third quarter fell to its lowest level since 2020, down 63% from the same period last year. This quarter, venture capital firms invested only $2 billion in the cryptocurrency field worldwide, which is only a small part of the funds they invested during the boom period of the crypto industry.

"We don't see big deals anymore," said PitchBook analyst Robert Le. "Smaller deal sizes are one of the drivers of the overall decline in investment deals." Large fundraising events during the crypto bull run have benefited companies such as exchange FTX, NFT market OpenSea and NFT creator Yuga Labs. Now, the retreat of venture capital may force companies that are already cutting costs and laying off employees to make difficult choices. Robert Le said: "If crypto startups can't raise a round of funds, even at a lower valuation, they will either go bankrupt or be acquired at a much lower valuation." [Original link]