Safe

Brett (Arbitrum)

Momentum

Compared to the previous year, the cryptocurrency industry did not get a lot of venture capital investment in 2023. According to reports, this year, only about $10.7 billion was <a href="https://www.theblock.co/post/268972/crypto-vc-funding-2023-recap" rel="noopener noreferrer nofollow">injected</a> into crypto projects and other blockchain startups, a huge plunge of 68% from the $33.3 billion invested in 2022. Also, a significant percentage of the investments were made in the first half of 2023.
The other half of the year saw a nosedive, even though there were more VC investments in November. Out of all these investments, there was more focus on pre-seed, seed, and Series A startup funding rounds. Mid- and later-stage deals like that of <a href="https://thecoinrise.com/bitgo-secures-100m-in-series-c-funding/" rel="noopener noreferrer nofollow">BitGo</a> and <a href="https://thecoinrise.com/gfo-x-completes-30m-series-b-funding-round/" rel="noopener noreferrer nofollow">GFO-X</a> only received a fraction of the $10.7 billion funds.
<h2 id="b-more-investments-in-seed-funding-rounds-b-span-style-font-weight-400-span">More Investments in Seed Funding Rounds&nbsp;</h2>
In January, Momentum Safe popularly known as <a href="https://thecoinrise.com/msafe-scores-5m-funding-to-create-multi-signature-solution/" rel="noopener noreferrer nofollow">MSafe secured $5 million dollars in a seed funding</a> round. The fund was generated to expand the digital company’s team, expand its product portfolio, and increase product adoption. Even FTX’s former President of its US division <a href="https://thecoinrise.com/brett-harrison-secures-5m-in-funding-for-his-new-business/" rel="noopener noreferrer nofollow">Brett Harrison received $5 million in a seed funding</a> round for his new crypto software startup, Architect.
Remarkably, a number of these investments were directed towards revolutionizing the crypto sector, especially the Web3.0 space.&nbsp;
<h2 id="b-2023-ranks-3rd-for-highest-venture-capital-investments-b-span-style-font-weight-400-span">2023 Ranks 3rd For Highest Venture Capital Investments&nbsp;</h2>
While the level of venture capital investment in 2023 is low compared to 2022, it ranked as the third-highest year in terms of the total funds invested. With a fund injection of only $10.7 billion, 2023 outpaced several bear markets. For instance, only $6.4 billion was invested in 2019-2020. In terms of the number of crypto VC deals, there were 1,819 deals this year, 32% less than 2,671 in 2022.
Most of these investments were in the Non-fungible token (NFT) and gaming sector with infrastructure and Web3.0 following closely.
<h2 id="b-funding-dip-attributed-to-regulatory-uncertainty-b-span-style-font-weight-400-span">Funding Dip Attributed to Regulatory Uncertainty&nbsp;</h2>
Abhishek Saxena, principal lead at Polygon Ventures, explained that the dip in the VC investments was expected due to the condition of the market this year.
“The significant drop in crypto funding in 2023 was largely expected given the macroeconomic environment, regulatory uncertainty, and the scars left by recent major crypto failures,” still investors and founders are surprised at how much the funding dropped. 
At the same time, Saxena acknowledged that the funding winter was a healthy and necessary correction to help the industry refocus its priority.
The post <a href="https://thecoinrise.com/venture-capital-investment-in-crypto-drops-by-68-in-2023-report/" rel="noopener noreferrer nofollow">Venture Capitalists Investment in Crypto Drops by 68% in 2023: Report</a> appeared first on <a href="https://thecoinrise.com" rel="noopener noreferrer nofollow">Latest News and Insights on Blockchain, Cryptocurrency, and Investing</a>.

Venture Capitalists Investment in Crypto Drops by 68% in 2023: Report

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