thecoinrepublic.com
- 1 Crypto companies raised $2.6B across 353 investment rounds.
- 2 11% decrease in quarter-to-quarter deal value and a 2.2% decrease in total deals.
Crypto VCs show the first quarter raising $2.6 billion. Though it shows a decline in investment activity compared to the previous quarters. The report suggests that the fall may continue. But, it also shows some positive outlooks.
Layer-2 Scaling solutions and crypto custodial services companies unfolded themselves as the most common ones. It attracts many considerable investments.
The Layer 2 scaling solutions lead the way.
The data reveals that layer-2 scaling solutions can continue their surge from 2022. Blockstream raised $125 million in a convertible note and debt round in the bitcoin scaling platform. It plans to use the funds to build out Bitcoin mining infrastructure.
Crypto VCs stands for crypto venture capitalist. It invests in early-stage startups offering products or services related to cryptocurrency, digital assets, technology, and blockchain. They mainly fund projects through equity investments, token sales, or other financial instruments.
Ledger and Taurus Received Sizable Investment
Ledger and Taurus received sizable investments in 2023. It means that besides the expansion of the solution, third-party providers of storage and security are gaining investments. On March 30, the ledger raised $109 million as demand for self-custody soared.
Meanwhile, Taurus raised $ 65 million in a Series B on Feb 14.On March 30, Ledger raised $109 million as demand for self-custody soared.The bear market makes the crypto space suffer. Still, VC is doing deals in 2023.
The initial round, i.e., the seed rounds, are up by 33.3% . The last stage rounds are up by 209.2% for the quarter compared with the entire year of 2022. However, the early-stage rounds are down by 16.7%. This shows that the expansion is going on and will survive the “crypto winter.”
The first Quarter of 2023 shows varied events in crypto VC
The First quarter of 2023 shows varied events in the crypto vc landscape. Binance made its return to the south korean market by acquiring the major stake in local crypto exchange GOPAX.
Karken in Feb settled with the Security and exchange commission (SEC) over unregistered securities allegations related to its crypto-staking services. It was required to face a $30 million fine and unstack assets from the US.
However, the crypto vc sector has shown a decline in investment, but the first quarter still shows the industry’s potential for growth. As more and more investors are entering the crypto space, a more cautious approach will be guarded about the future of crypto VC investment.
The coming quarter will reveal whether the downward trend in investment activity continues or if the sector boosts. As the industry evolves and grows, crypto VC investment will play a main role in making the future of the digital asset ecosystem.