Bitcoin

Winter

<![CDATA[<figure class="image"><img src="https://cimg.co/news/126106/332993/btc-32.jpeg" srcset="https://cimg.co/news/126106/332993/responsive-images/btc-32___media_library_original_1200_1200.jpeg 1200w, https://cimg.co/news/126106/332993/responsive-images/btc-32___media_library_original_900_900.jpeg 900w, https://cimg.co/news/126106/332993/responsive-images/btc-32___media_library_original_720_720.jpeg 720w, https://cimg.co/news/126106/332993/responsive-images/btc-32___media_library_original_600_600.jpeg 600w, https://cimg.co/news/126106/332993/responsive-images/btc-32___media_library_original_300_300.jpeg 300w" width="1200" class="content-img" alt=""><figcaption>Frozen Bitcoin Logo / Source: Adobe</figcaption></figure>The crypto winter that began in 2022 yet to end, according to the latest figures on venture capital (VC) funding for crypto firms presented by data analytics firm FundStrat.<a href="https://fundstrat.com/wp-content/uploads/2023/10/Q3-2023-Funding-Report_FSGA_10.06.23-1.pdf">In a new presentation</a>, FundStrat noted that VC funding for crypto firms contracted for a sixth successive quarter to $1.4 billion in Q3 2023, while the number of individual deals dropped 30% to 214.That&rsquo;s a near 90% decline from the more than $10 billion in VC funding that crypto firms were able to secure in Q1 2022, shortly after many crypto assets reached their all-time peaks in late 2021.Still, despite the <a href="https://cryptonews.com/news/crypto-venture-investments-web3-startups-decline-for-seventh-consecutive-quarter.htm">big decline in the past year and a half</a>, VC funding for crypto firms remains 2-3x above its levels for most of 2018-2020, FundStrat pointed out.<figure class="image"><img src="https://cimg.co/news/126106/332994/fundstrat-1.jpg" srcset="" width="" class="content-img" alt=""></figure>&ldquo;Despite a sustained decrease in total capital investment, the crypto venture market has continued to attract more interest compared to previous market cycles,&rdquo; FundStrat noted.&ldquo;Potential tailwinds to end 2023 include the increased likelihood of a spot Bitcoin ETF approval and most of the US monetary tightening in the rearview mirror,&rdquo; the data analytics firm added.<h2 id="strong-infrastructure-retains-lead-but-cefi-and-web3-social-apps-enjoy-growth-strong">Infrastructure Retains Lead, But CeFi and Web3 Social Apps Enjoy Growth</h2>While <a href="https://cryptonews.com/news/blockchain-cloud-building-successful-blockchain-infrastructures-part-2.htm">crypto infrastructure</a> firms continued to attract the most investment in Q3, raising $586 million across 79 deals, their dominance in the VC crypto landscape faded versus Q1 and Q2.The most notable fund raising round conducted by an infrastructure firm was <a href="https://cryptonews.com/news/ethereum-infrastructure-provider-flashbots-raises-60-million-series-b-funding-crypto-bull-market-back.htm">Flashbots $60 million raise</a>, which gave the company unicorn status (i.e. a valuation of above $1 billion).Meanwhile, <a href="https://cryptonews.com/guides/what-is-web3.htm">Web3</a> &amp; <a href="https://cryptonews.com/news/nft-news/">NFTs</a> were able to raise $325 million across 55 deals, powered by growth in interest in social apps such as friend.tech, which raised an undisclosed amount in Q3.&ldquo;As content creators begin engaging with audiences in new formats, <a href="https://cryptonews.com/videos/rac-and-david-greenstein-on-why-music-nfts-are-better-than-spotify-ep347.htm">monetization of intellectual property becomes increasingly important</a>,&rdquo; FundStrat noted.&ldquo;New projects such as Sound.xyz&hellip; are seeking to change the way in which creators can capitalize on their content,&rdquo; they added.Sound.xyz was able to raise $20 million in a series A funding round led by Andreessen Horowitz.Elsewhere, after struggling to gain funding in the first half of 2023 in wake of the high-profile failure of centralized cryptocurrency exchange FTX, VC interest in <a href="https://cryptonews.com/exclusives/defi-vs-cefi-difference-between-decentralized-centralized-finance.htm">CeFi</a> was on the rise in Q3 and it was the third most funded category.&ldquo;It is important to caveat that the funding was spread across fewer deals, as investors may be looking to support CeFi companies with a proven track record rather than brand new projects,&rdquo; FundStrat added.CeFi raised $226 million in Q3 across 14 deals, which a substantial $100 million chunk of this investment going to crypto custody firm BitGo.<h2 id="strong-crypto-investments-worth-considering-strong">Crypto Investments Worth Considering</h2>Blue-chip cryptocurrencies such as <a href="https://cryptonews.com/coins/bitcoin/">Bitcoin</a> (BTC) and <a href="https://cryptonews.com/guides/what-is-ether.htm">Ether</a> (ETH) should form the bread and butter of any crypto investors portfolio.But if investors want exposure to potentially exponential near-term gains, they should consider an alternative high-risk-high-reward investment strategy &ndash; investing in <a href="https://cryptonews.com/news/best-crypto-presales.htm">crypto presales</a>.This is where investors buy the tokens of up-start crypto projects to help fund their development.These tokens are nearly always sold cheaply, and there is a long history of presales delivering huge exponential gains to early investors.Many of these projects have fantastic teams behind them and a great vision to deliver a revolutionary crypto application/platform.If an investor can identify such projects, the risk/reward of their presale investment is very good.The team at Cryptonews spends a lot of time combing through presale projects to help investors out.Here is a list of 13 of their favorite crypto presales for 2023.<a href="https://cryptonews.com/news/best-crypto-presales.htm">See the 13 Cryptocurrencies</a>Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.
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Crypto VC Funding Declines Again in Q3 as Crypto Winter Drags On

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