Venture capital funding in the crypto industry rebounded in the last quarter of 2020 due to the ongoing cryptocurrency bear market. According to Messari's report dated October 5, $2.1 billion was raised for crypto startups in Q3 2023 with a total of 297 deals. This was down 36% from the previous quarter and 70% from the third quarter of 2022.
Seed funding was the largest fundraising category, raising $488 million across 98 deals. “Trends in transaction numbers show a significant shift from later stage projects to early stage projects over the last three years,” the researchers said. Less than 1.4% of deals involved companies from a Series B round or later.
On the other hand, strategic financing rounds have risen sharply from 0.2% of the total deal share in the last quarter of 2021 to 22% currently. The highest private equity round in the quarter was a $200 million investment in UAE-based Islamic Coin from Alpha Blue Ocean family office ABO Digital. Messari stated:
“Challenging market conditions are forcing projects to undertake short-term bridge runs or ultimately be acquired by larger projects.”
Despite regulatory uncertainty, 54% of all active venture capital investors came from the United States, more than any other country worldwide combined. Investors' appetite has shifted from user-focused applications to blockchain infrastructure, and the infrastructure has consistently generated more funding than before over the past three months.
However, “Without successful user-focused crypto applications, infrastructure investments are unlikely to deliver the desired returns, and this trend may not continue for a long time,” the researchers said. When do you think this trend will change and the crypto industry will rise again? We are waiting your comments.
Seed funding was the largest fundraising category, raising $488 million across 98 deals. “Trends in transaction numbers show a significant shift from later stage projects to early stage projects over the last three years,” the researchers said. Less than 1.4% of deals involved companies from a Series B round or later.
On the other hand, strategic financing rounds have risen sharply from 0.2% of the total deal share in the last quarter of 2021 to 22% currently. The highest private equity round in the quarter was a $200 million investment in UAE-based Islamic Coin from Alpha Blue Ocean family office ABO Digital. Messari stated:
“Challenging market conditions are forcing projects to undertake short-term bridge runs or ultimately be acquired by larger projects.”
Despite regulatory uncertainty, 54% of all active venture capital investors came from the United States, more than any other country worldwide combined. Investors' appetite has shifted from user-focused applications to blockchain infrastructure, and the infrastructure has consistently generated more funding than before over the past three months.
However, “Without successful user-focused crypto applications, infrastructure investments are unlikely to deliver the desired returns, and this trend may not continue for a long time,” the researchers said. When do you think this trend will change and the crypto industry will rise again? We are waiting your comments.