The third quarter of 2023 has marked a downturn in the cryptocurrency sector, with fundraising levels reaching a three-year low. Crypto firms managed to accumulate just under $2.1 billion across 297 deals, the lowest seen since the last quarter of 2020. 
According to data from blockchain intelligence firm <a href="https://messari.io/report/state-of-crypto-fundraising-q3-2023" rel="nofollow noopener" target="_blank">Messari</a>, this quarter’s fundraising figures are the lowest since Q4 2020. The year 2023, up till now, has witnessed 912 financing deals, amassing roughly $7 billion, a 73% decrease from the approximately $26 billion raised during the same period in the previous year. 
<img decoding="async" class="size-full wp-image-24148 alignnone" src="https://crypto.ro/en/wp-content/uploads/2023/10/ezgif.com-webp-to-png-6.png" alt="ezgif.com webp to png 6" width="1600" height="900" srcset="https://crypto.ro/en/wp-content/uploads/2023/10/ezgif.com-webp-to-png-6.png 1200w, https://crypto.ro/en/wp-content/uploads/2023/10/ezgif.com-webp-to-png-6-300x169.png 300w, https://crypto.ro/en/wp-content/uploads/2023/10/ezgif.com-webp-to-png-6-1024x576.png 1024w, https://crypto.ro/en/wp-content/uploads/2023/10/ezgif.com-webp-to-png-6-768x432.png 768w, https://crypto.ro/en/wp-content/uploads/2023/10/ezgif.com-webp-to-png-6-750x422.png 750w, https://crypto.ro/en/wp-content/uploads/2023/10/ezgif.com-webp-to-png-6-1140x641.png 1140w" sizes="(max-width: 1600px) 100vw, 1600px" title="Crypto fundraising hits three-year low in Q3 2023 13"> 
The downturn is not confined to a particular quarter but is part of a continuing trend, marking the seventh straight quarter of declining investments in the sector since the peak in Q4 2021. 
The venture capital interest, especially in <a href="https://crypto.ro/en/education/best-crypto-portfolio-tracker/#1-hodlezz-free-crypto-portfolio-tracker">web3 startups</a>, has been on a downward spiral, with data from Crunchbase revealing a continual reduction in investments over the past quarters. 
In Q3 2023, web3 startups raised a mere $1.3 billion, plummeting from around $2 billion in both Q1 and Q2 of the same year. This is a significant drop compared to the average of more than <a href="https://crypto.ro/en/news/european-crypto-startups-raise-record-5-7-billions-in-2022/">$8 billion raised in every quarter from Q3 2021 to Q2 2022</a>. 
The drastic dip in fundraising highlights a shift in investor focus, with more attention being given to early-stage projects and infrastructure investments as opposed to user-facing applications. 
The dip in fundraising activities signals a cautious, if not skeptical, stance from investors, which may be attributed to various factors including regulatory uncertainties, market volatilities, and perhaps a recalibration of expectations towards more realistic valuations.

Crypto fundraising hits three-year low in Q3 2023

crypto.ro global

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