Crypto Funding Stats 2023
Galaxy Research’s latest report suggests that venture capitalists are shying away from the blockchain ecosystem. For the first time since 2020, the number of deals closed is below 400 after three quarters.
By comparison, the blockchain analytics company reported 600 deals worth $6 billion at the same in 2022. Moreover, Galaxy Research notes a 37% drop in investment in the third quarter of this year compared to the same period, when $3.8 billion was poured into crypto projects.
While other investors are backing away from crypto, the founder of Delta Blockchain Fund, Kavita Gupta, says she is here to stay. Gupta claims that the failure of crypto projects to announce funding rounds is driving the narrative that venture capitalists are no longer interested in crypto. She discloses that her company closed four deals in September and is almost sealing another.
Venture Capitalists Investing in Crypto Amid Bear Market
Gupta’s claims that investors are still deploying capital could be true, considering that Tim Draper, a well-known Bitcoin proponent, launched a crypto venture capital, Draper Goren Blockchain, to financially support crypto projects.
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Draper co-founded the company with his long-term business partner, Alon Goren. At the time, Goren said the current market downturn will not stop them from investing in crypto projects.
Meanwhile, MEXC Exchange’s investment arm, MEXC Ventures, has announced its interest in investing in Toncoin. This further supports Gutpa’s sentiments that there is still investor interest in crypto.
When asked why the number of deals has declined this year, Gupta says the bull market, which ended last year, caused excitement among investors, fueling oversubscription in various funding rounds. However, she says the current bear market has taught investors to carefully examine projects before injecting funds and that explains the reduced number of deals.
“We Need a Clear Crypto Rulebook,” Gupta Says
Gupta is calling for clear crypto regulations, which she believes will pull more investors to the industry. In the United States, regulators are still not showing interest in clarifying crypto rules despite so many calls from Web3 players. Moreover, their constant attacks on crypto companies are likely pushing investors away from the blockchain industry.
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