Crypto VC funding falls to 3-year lows as market rout continues
Venture capitalists are doing fewer deals and the average deal size is getting much smaller, according to researchers. Startup funding in the crypto industry has fallen back to Q4 2020 levels amid the ongoing cryptocurrency bear market . 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. Seed funding 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. Crypto VC funding has been on a decline since Q2 2022 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 r...