Crypto VC funding plummeted 68% in 2023, signaling industry refocus

December 30, 2023 10:04 PM PST | By Invezz

Crypto VC funding plummeted 68% in 2023, signaling industry refocus — Image source: Invezz

Cryptocurrency investments in 2023

The market saw most of 2023 investments happening in the year’s initial half, with the past six months recording declines. Nevertheless, November saw a slight surge amid renewed investor interest. Also, there were changes in the investment stages. Investors delved more into pre-seed, seed, & series A fundings.

Contrarily, mid & later-stage funding dips, indicating a shift toward new ventures within the digital assets market.

Meanwhile, web3, NFT, and infrastructure led as far as sectors in the crypto space are concerned. Others, like trading platforms, enterprise solutions, and data analytics, noted declined investment deals.

While 2023’s investments were lower than 2022 peaks, surpassing the $6.4 billion attained during the 2019-2020 bearish market signals a maturing market, attracting substantial investments despite challenges.

Crypto venture capital deals dipped from 2,671 in 2022 to 1,819 in 2023, a 32% plunge. The deal count stayed steadily higher than monthly contracts in 2020 and close to 2021 figures.

2023 crypto funding dip triggers industry refocus

The broad economic trends, regulatory uncertainties, and the impact of the failed entities contributed to the significant decline in cryptocurrency funding in 2023. Meanwhile, the downside was somewhat healthy, allowing the market to consider top priorities.

The 2023 crypto investment landscape shows investors prioritizing early-stage enterprises. That shows a growing trust in the longer-term potential of crypto and blockchain techs despite near-term challenges.

Meanwhile, crypto venture capitalists expect increased investments in the space in 2024, matching the latest price shifts and the forecasted surges in the digital coins industry.

The post Crypto VC funding plummeted 68% in 2023, signaling industry refocus appeared first on Invezz

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