Even if the cryptocurrency market is in a bear market, venture capital (VC) companies are still closing transactions in 2023. It shows that the companies are still active despite the “crypto winter.”
According to Reports, Crypto VCs have done $2.6 billion Worth of Deals
In the first three months of 2023, crypto businesses raised $2.6 billion through 353 funding rounds, according to PitchBook’s Crypto Report. Although it demonstrates that the space is still in use, it is clear that its power has diminished.
According to the data, deal value dropped by 11% from quarter to quarter, and deal volume dropped by 12.2%. The lowest amount of capital invested in the sector since 2020 was also seen during the quarter.
Additionally, the research stated that there had been differing value trends. For the quarter, compared to the entire year of 2022, seed rounds are up 33.3%, and late-stage rounds are up 209.2%. Early-stage rounds, though, have decreased by 16.7%.
Some Positive Developments According to the Report
The research noted several promising developments for the industry, even if it acknowledged that the slump might persist. The information indicates that layer-2 scaling solutions can keep growing starting in 2022. According to the article, Scroll, a company developing a zero-knowledge scaling solution for Ethereum Virtual Machines, raised $50 million in a late-stage venture capital round, and Blockstream raised $125 million to fund a Bitcoin mining infrastructure.
Increase in Custody Solution Providers
In addition to scaling solutions, Ledger and Taurus, providers of custody solutions, attracted large investments in 2023. Ledger raised $109 million on March 30 as demand for self-custody skyrocketed. On February 14, Taurus raised $65 million in a Series B.
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