Whereas the crypto area suffers via a bear market, enterprise capital (VC) corporations are nonetheless making offers in 2023, demonstrating that the area is alive and nicely regardless of the “crypto winter.”
According to PitchBook’s Crypto Report for the primary quarter of 2023, crypto firms raised $2.6 billion throughout 353 funding rounds. Whereas it reveals the area continues to be lively, it’s evident that it’s not as sturdy because it was.
The report revealed an 11% lower in quarter-on-quarter deal worth and a 12.2% lower in whole offers. As well as, the quarter additionally recorded the bottom quantity of capital invested within the area since 2020.
The report additionally famous that valuation traits have been combined. Seed rounds are up by 33.3% and late-stage rounds are up by 209.2% for the quarter in comparison with all the 12 months of 2022. Nonetheless, early-stage rounds are down by 16.7%.
Whereas the report acknowledges that the decline could doubtlessly proceed, it additionally recognized some optimistic outlooks for the area. In keeping with the information, layer-2 scaling options are nonetheless in a position to proceed their momentum from 2022. The report cited Blockstream elevating $125 million to finance a Bitcoin mining infrastructure and Scroll, a agency constructing a zero-knowledge Ethereum Digital Machine scaling answer, elevating $50 million in a late-stage VC spherical.
Aside from scaling options, custody answer suppliers Ledger and Taurus each obtained sizable investments in 2023. On March 30, Ledger raised $109 million as demand for self-custody soared. In the meantime, Taurus raised $65 million in a Series B on Feb. 14.