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 Venture capitalists are doing fewer deals and the average deal size is getting much smaller, according to researchers.
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 <p>Startup <a rel="noopener noreferrer nofollow" title="funding" href="https://thebittimes.com/tag/funding.html">funding</a> in the crypto industry has fallen back to Q4 2020 levels amid the ongoing cryptocurrency bear <a rel="noopener noreferrer nofollow" title="market" href="https://thebittimes.com/tag/market.html">market</a>.</p>
 <p>According to an October 5 report by blockchain analytics firm Messari, a total of $2.1 billion across 297 deals were raised by crypto startups in Q3 2023, down 36% from the previous quarter and nearly 70% from Q3 2022.</p>
 <p>Seed <a rel="noopener noreferrer nofollow" title="funding" href="https://thebittimes.com/tag/funding.html">funding</a> accounted for the largest fundraising category, with $488 million raised over 98 deals. "Trends in deal counts show a significant shift away from later-stage projects and into early-stage projects over the last three years," researchers wrote. Less than 1.4% of deals involved companies at the Series B round or later.</p>
 <figure><img src="https://cdn.thebittimes.com/images/2023/10/05/2628fcc254e2cae3dc7f7d2b102c984f.webp" alt="" title="">
  <figcaption style="text-align: center;"><em>Crypto VC funding has been on a decline since Q2 2022</em>
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 <p>Meanwhile, strategic financing rounds rose sharply from 0.2% of total deal share in Q4 2021 to over 22% as of now. The highest private equity round during the quarter was a $200 million investment into UAE-based Islamic Coin from family office Alpha Blue Ocean’s ABO Digital. Messari stated:</p>
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  "Harsh market conditions are forcing projects to raise short-term bridge rounds or ultimately get acquired by larger projects."
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 <p>Despite regulatory uncertainty, 54% of all active venture capital investors were from the U.S., more than the rest of the world combined. Investors' appetites have also shifted from user-facing applications to blockchain infrastructure, with the latter consistently outperforming the former in <a rel="noopener noreferrer nofollow" title="funding" href="https://thebittimes.com/tag/funding.html">funding</a> for the past three months.</p>
 <p>"However, this trend may not last for long as more investors are beginning to realize that without successful user-facing crypto applications, infrastructure investments are less likely to generate their desired returns," researchers wrote.</p>
 <p><strong>Magazine:&nbsp;Minecraft bans Bitcoin P2E, iPhone 15 &amp; crypto gaming</strong></p>
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<p>Source: <a rel="noopener noreferrer nofollow" target="_blank" href="https://thebittimes.com/crypto-vc-funding-falls-to-3-year-lows-as-market-rout-continues-tbt65269.html">https://thebittimes.com/crypto-vc-funding-falls-to-3-year-lows-as-market-rout-continues-tbt65269.html</a></p>

Crypto VC funding falls to 3-year lows as market rout continues

TheBitTimes

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