A recent report by analytics platform CryptoRank revealed that since the beginning of 2023, the total amount of funds raised through cryptocurrency fundraising has reached a staggering $831 million.
The report also highlighted that Web3, blockchain infrastructure, and DeFi startups received the highest amount of funding. Coinbase Ventures, Animoca Brands, and Shima Capital were found to be the most active funds.
Crypto fundraising has become a buzzworthy topic in the crypto community as more and more investors pour money into promising projects.
— CryptoRank Platform (@CryptoRank_io) February 24, 2023
However, recent data shows a decrease in fundraising activity compared to previous quarters.
👉https://t.co/uXjFoaPAwi pic.twitter.com/xqf2Vjv6ly
CryptoRank report highlights the growing interest of venture capital firms in the cryptocurrency industry, with significant amounts of funding being raised in recent months.
Venture capital firms have increasingly shown interest in the crypto space, with many investing heavily in bitcoin and other cryptocurrencies. According to the report, this is evidenced by the strong correlation between the amount of money invested by VCs and the price of bitcoin.
For example, in the first quarter of 2021, a spike in VC investment coincided with a significant increase in the price of bitcoin. Similarly, in the fourth quarter of 2022, a sharp decline in VC investment coincided with a drop in the price of bitcoin to multi-year lows.
Despite the volatility of the cryptocurrency market, VCs continue to pour money into the industry, betting on its potential for long-term growth. The report highlighted an increase in the number of funding rounds that took place last month.
Since the beginning of 2023, 195 funding rounds raised a total of $1.5 billion, suggesting a strong and growing interest in investment opportunities in various industries. It will be interesting to see how this trend develops throughout the rest of the year.
The report also showed that VCs are continuing to focus on early-stage funding rounds, with a combined total of $622 million raised in Q4 for pre-seed and seed rounds. Later-stage rounds like Series A, B, C, and D tend to have fewer successful projects and bigger total capital raised.
However, as the crypto market expands and higher-quality projects emerge, the report suggests we may see a shift towards more funding in post-seed rounds.
The report further notes that despite market volatility, entrepreneurs seeking funding and investors looking for opportunities should keep an eye on these players, as they are likely to continue leading innovation and growth.
However, the report showed that IDO, ICO, IEO fundraising has been at record lows since the beginning of 2021. Meanwhile, launchpads have become a popular alternative to traditional fundraising methods in the cryptocurrency industry.
