After a significant downturn in the crypto market, it appears that in the first half of 2023, the venture investment market, much like the price of Bitcoin, has found its bottom. But unlike the BTC price, the recovery trend in fundraising has not been observed yet; the raised amount fell by 87% in Q2 2023 compared to Q2 2022.
A total of $5.1B was raised across 619 funding rounds in the first half of 2023. Improved market sentiment has not had a significant impact on fee growth. Historical data shows that the total fees figure often lags behind the Bitcoin price by several months.
Highlights
In the first half of the year, Blockchain Service emerged as the dominant category in the fundraising market, capturing a significant 38% of total investments. Interestingly, there has been a notable decline in venture capital’s interest in DeFi, which now accounts for only 9% of the overall funding.
Blockchain service projects are leading the way, largely due to the growing adoption of Web3 technologies. They serve as the main connection between users and blockchain, bridging the gap between web2 and web3 and making the experience of using decentralized networks more convenient. Among blockchain service projects raising money in 2023, Ledger, a crypto wallet developer, and EigenLayer, a liquid staking derivatives restocking platform, are noteworthy.
VCs continue to prioritize early-stage rounds, with pre-seed and seed rounds accumulating a total of over 1 billion USD in funding.
In contrast, in later stages such as Series A, B, C, and D, the number of successfully closed rounds tends to decline. Meanwhile, the average amount raised per round is significantly higher at later stages of fundraising.
However, with the expansion of the crypto market and the emergence of high-quality projects, we can anticipate a potential s
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Author: Laurie Dunn
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