Bitcoin

The cryptocurrency sector is experiencing a <a href="https://www.rootdata.com/dashboard" rel="noopener noreferrer nofollow">significant downturn</a> in venture capital (VC) funding, marking the fifth consecutive quarter of decline since Q1 2022, according to data from VC firm Pitchbook. The global funding for crypto startups has dropped to $2.34 billion, a stark contrast to the industry&#39;s peak of $12.14 billion in the first quarter of 2022. This decline is attributed to a variety of factors, including regulatory challenges, economic uncertainty, and a shift in investor sentiment.The second quarter of 2023 saw significant funding rounds, such as LayerZero&#39;s <a href="https://www.prnewswire.com/news-releases/layerzero-labs-closes-120-million-series-b-funding-round-raising-its-valuation-to-3-billion-301789138.html" rel="noopener noreferrer nofollow">$120 million Series B</a> and Worldcoin&#39;s <a href="https://www.financialexpress.com/business/blockchain-worldcoin-to-raise-115-million-for-its-decentralised-project-3102617/" rel="noopener noreferrer nofollow">$115 million Series C</a>. However, these figures are dwarfed by the previous highs. Lydia Chiu, VP of Business Development at Ava Labs, suggested that investors are now writing &#34;smaller checks&#34; due to lower valuations in the crypto industry.The <a href="https://cryptotale.org/us-sec-sues-binance-for-mishandling-billions-of-dollars/" rel="noopener noreferrer nofollow">regulatory landscape</a> in the U.S. has been a significant factor in this decline. Many crypto-related deals in Q2 were structured like traditional venture structures, such as raising equity, as opposed to token investments or simple agreements for future tokens (SAFTs).The industry has also been affected by a number of crypto companies filing for <a href="https://cryptotale.org/?s&#61;Chapter&#43;11" rel="noopener noreferrer nofollow">Chapter 11 bankruptcy</a> protection last year, which has dented confidence in the sector. Traditional firms and entrepreneurs have exited the U.S. ecosystem, and investors have adopted a more discerning approach that values profits over growth.Read full article a<a href="https://cryptotale.org/crypto-industry-sees-continued-vc-funding-slump-amid-economic-tension/" rel="noopener noreferrer nofollow">t CryptoTale.</a>

Crypto Industry Sees Continued VC Funding Slump Amid Economic Tension

CryptoTale

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