Research Summary
The report provides an analysis of the venture capital (VC) investments in the crypto and blockchain sector for Q2 2023. The report reveals a decline in capital invested in crypto and blockchain startups, with a total of $2.32bn invested, marking a new cycle low since Q4 2020. Despite this, deal activity increased slightly with 456 deals completed. The United States continues to dominate the crypto startup landscape, accounting for more than 43% of all deals completed and raising more than 45% of the capital invested by VC firms.
Actionable Insights
- VC investment in crypto and blockchain is declining: The total capital invested in Q2 2023 was $2.32bn, the lowest since Q4 2020. However, deal activity increased slightly with 456 deals completed.
- US dominates crypto startup landscape: US-based crypto startups accounted for more than 43% of all deals completed and raised more than 45% of the capital invested by VC firms.
- Web3 and Trading categories lead in deal count and capital raised: Companies building in the Web3 category dominated deal count, while companies in the Trading category raised the most total capital.
- Challenging VC fundraising environment: Only $720m was raised by 10 new crypto VC funds in Q2 2023, the lowest since Q3 2020 at the beginning of the COVID-19 pandemic.
