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Laxman Pai, Opalesque Asia: Though the crypto and blockchain startups sector deal count ticked up slightly in Q2 2023, the sum of capital invested by venture capitalists into the sector continued to decline QoQ, said a study.
According to the new report released by Galaxy Research, the second quarter of this year saw an investment of $2.3 billion from venture capital firms in crypto and blockchain firms. This marks a steep decline from the same period a year ago when VC firms raised more than $8 billion.
The crypto industry was awash with venture capital during its pandemic-era boom, which attracted a record $13 billion in the first quarter of 2022. But a challenging business environment and high-interest rates have effectively shrunk deal flow - and it continues to shrink.
While capital invested has not yet found a clear bottom, deal activity increased slightly in Q2, with 456 deals completed vs. 439 deals in Q1 2023. The slight gains were driven by an increase in Series A deals to 174 vs. 154 in Q1.
In terms of capital invested, earlier-stage deals (Pre-Seed, Seed, and Series A) accounted for the vast majority of investment (73%) vs. later stage deals (27%).
Meanwhile, companies founded in 2021 and 2022 completed the most venture deals in Q2 2023. Unlike Q1 of this year, 2022 vintaged companies raised the most capital of any annual cohort, though 2021 vintages were close behind.
Companies based in the United States are dominated by both deals completed ...................... To view our full article Click here
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