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According to research firm PitchBook data, venture capitalists invested $2 billion in crypto during Q3, 2023. 
Venture capitalists seem to slow down their investments in the crypto market as global crypto funding during the third quarter of 2023 hit the lowest level over the past few years. In Q3, investors around the globe put only $2 billion in crypto projects, representing a 63% decline from the same period in 2022, Bloomberg <a href="https://www.bloomberg.com/news/articles/2023-10-09/ftx-trial-63-drop-in-startup-funding-plague-crypto-industry#xj4y7vzkg" target="_blank" rel="noreferrer noopener">reports</a>, referring to data from PitchBook. 
<figure class="wp-block-image aligncenter size-full">
 <img decoding="async" width="641" height="300" src="https://crypto.news/app/uploads/2023/10/gbpysdhf.jpg" alt="Global crypto venture funding hits lowest level since 2020 - 3" class="wp-image-14201818">
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 Global crypto venture funding | Source: PitchBook
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</figure> 
As noted by PitchBook analyst Robert Le, the market is no longer seeing the big deals anymore, adding that their size is “one of the drivers of the decline.” 
<blockquote class="wp-block-quote"> 
 “If they’re not able to raise a round, even a down round, they’re either going to go out of business or get acquired at a valuation that’s much, much lower.” <cite>Rober Le, PitchBook analyst</cite>
</blockquote> 
Le noted the market is likely to stay in this negative trend for a while due to a large-scale mistrust among investors triggered after FTX went bust. Given that the now-bankrupt crypto exchange and its hedge fund Alameda Research <a href="https://crypto.news/what-to-know-about-ftx-star-witness-caroline-ellison/" target="_blank" rel="noreferrer noopener">have such a vast portfolio</a>, it could “further depress valuations in this space,” the PitchBook analyst added. 
 You might also like: <a href="https://crypto.news/south-koreas-crypto-market-soars-to-21-1-billion-in-h1/"> South Korea’s crypto market soars to $21.1 billion in H1 </a> 
As crypto.news earlier reported, by the end of September 2023, Bitcoin-based products <a href="https://crypto.news/digital-asset-investments-see-outflows-for-sixth-successive-week/" target="_blank" rel="noreferrer noopener">experienced</a> outflows for a few weeks, suggesting that investors are continuing to liquidate short positions. 
Analysts at CoinShares believe investors are becoming more discerning in the altcoin market, with continued inflows into <a href="http://crypto.news/price/xrp/" target="_blank" rel="noreferrer noopener">XRP</a> and Solana (<a href="http://crypto.news/price/solana/" target="_blank" rel="noreferrer noopener">SOL</a>) at $0.66 million and $0.31 million, respectively. 
 Read more: <a href="https://crypto.news/stablecoin-market-cap-down-35-18-months-after-terra-collapse/"> Stablecoin market cap down 35% 18 months after Terra collapse </a>

Global crypto venture funding hits lowest level since 2020

crypto.news

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