The latest data confirmed that the majority of Venture capitalists (VCs) are stepping away from the crypto sector citing the bankruptcy of companies & unclear regulatory environment.
The crypto sector saw the downfall of several crypto tokens & crypto companies because of a big downfall in the trade price of the top flagship crypto assets. Because of bankruptcy the majority of the VCs are in fear & they are not in the mood to take risk over their investment.
Recently PitchBook published a report and noted that Venture investment in the crypto sector plunged by nearly 78% in the first quarter of this year, over the first quarter of the last year.
In Q1 2023, the crypto companies raised nearly $2.6 billion in global venture capital. This amount of fund inflow in the crypto sector is lowest in any quarter, since 2020.
According to Pitchbook data, the Layer-2 scaling crypto project succeeded in attracting huge VC funding over any other project. In Q1, Blockstream, a Bitcoin scaling firm, raised $125 million
“Bitcoin scaling platform Blockstream raised a $125.0 million convertible note and debt round, and it will use the funds to build out Bitcoin mining infrastructure. The company previously raised a $163.1 million Series B in August 2022”, data showed.
Few crypto experts believe that the situation is not going to change soon for this innovative sector and probably people will take nearly more than 2 years to forget the bankruptcy of several crypto companies, which took place in 2022 & half of 2023.
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