As per a recent report by Pitchbook, there’s a 2.5% increase in venture funding for companies related to crypto. The total value in the 4th quarter is worth $1.9 billion, overcoming the third quarter significantly. This sudden increase in crypto funding has been recorded after a long dry spell since March 2022.
Moreover, PitchBook reported that the main crypto ventures receiving funding are focused on financial and technological solutions. These include tokenizing real-world assets, such as real estate and stocks, and creating decentralized computing infrastructure.
Companies like Swan Bitcoin and Blockchain.com were some of the top companies contributing to this significant rise in funding. The companies secured $165 million and $100 million respectively.
According to PitchBook’s Q1 Crypto Report, crypto firms secured $2.6 billion in 353 investment rounds during the first quarter of 2023. The report indicates an 11% decrease in deal value from the previous quarter and a 12.2% decrease in total deals.
Additionally, the quarter marked the lowest capital investment in the crypto space since 2020.
While the crypto market was struggling to keep its pace in 2022, crypto funding was also getting challenged. VC investment peaked at $11 billion and 692 deals in the first four months of 2022, but steadily declined in subsequent quarters.
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