Q3 Crypto Fundraising Hits Three-Year Low Amidst Crypto Winter: Messari Report

Q3 Crypto Fundraising Hits Three-Year Low Amidst Crypto Winter: Messari Report

Crypto News – During Q3, the fundraising efforts of cryptocurrency companies experienced a decline, accumulating just under $2.1 billion across 297 transactions. This marks the lowest amount recorded since Q4 2020, as revealed by blockchain intelligence firm Messari.

The industry faced a challenging phase known as the ‘crypto winter’ during Q3, resulting in the lowest fundraising levels in three years. The figures dipped significantly compared to the peak observed in Q1 2022, where funds raised totaled nearly $17.5 billion from over 900 transactions. This downturn continued throughout the year due to deteriorating conditions within the crypto sector, culminating in the abrupt collapse of the FTX exchange in November.

However, fundraising managed to maintain stability through Q1 and Q2 of 2023, with approximately $7.5 billion secured across roughly 200 transactions in each quarter, aligning with the numbers from Q4 2022. Nevertheless, both the amount raised and the number of deals suffered a 36% decline in Q3.

Messari’s report also emphasized a shift in investor focus towards fresh investments in early-stage projects and infrastructure, deviating from investments in consumer-facing applications.