Crypto sector saw a year-on-year 78% decrease in VCs funding in Q1 2023 

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.

Read Also: Argentine coffee shop "CrypStation" saw a 10× increment in crypto payment customers

Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.

Comments are closed.