Amidst a global reduction in startup funding, the crypto market grapples with its own set of unique challenges and opportunities. Although entrepreneurs are adapting to these challenges by exploring alternative funding avenues and navigating regulatory environments, the scarcity of funding prevents innovation.
Latin America’s crypto scene reveals a story of resilience, paving the way for a more inclusive and technologically advanced future.
Interest In Cryptocurrency Wanes
The funding environment, a critical aspect for startups, has seen a dramatic downturn. In 2023, startup funding in Latin America decreased by 83% compared to the previous year, with only $1.1 billion invested.
Likewise, global venture capital funding for crypto firms experienced a substantial decrease in the first quarter of 2023, plummeting by 80% compared to the previous year. This drop brought the investment down from $12.3 billion in 2022 to $2.4 billion in 2023.
“Only 12% [of family offices] expressed potential future interest [in crypto], down from 45%. The extreme crypto market volatility of the past year seems to have cooled their interests, as 62% report being not invested and not interested in crypto in the future, up from 39%,” a Goldman Sachs survey revealed.
This decline reflects a broader global trend influenced by macroeconomic factors, such as high-interest rates directing capital towards lower-risk investments. As these rates adjust, there is potential for a resurgence in startup investments, but the situation remains challenging.
Go to Source to See Full Article
Author: Bary Rahma
Tip BTC Newswire with Cryptocurrency
Donate Bitcoin to BTC Newswire
Donate Bitcoin Cash to BTC Newswire
Donate Ethereum to BTC Newswire
Donate Litecoin to BTC Newswire
Donate Monero to BTC Newswire
Donate ZCash to BTC Newswire
