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Fundraising in Crypto Significantly Declined in 2023- ROOTDATA

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Fundraising in Crypto Significantly Declined in 2023- ROOTDATA
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Cryptocurrencies have performed impressively in 2023, but as per the data from ROOTDATA, the crypto fundraising trend declined in the past year compared to 2022 and 2021. Approximately 1170 funding rounds occurred in the past 12 months.

In 1170 funding rounds, 393 companies secured funds in the seed funding round, followed by 108 in pre-seed, 107 others, and 80 in strategic funding. The number of companies that secured funds between 1-3 Million is 320, followed by 193 between 3-5 Million.  

In terms of category, $20,629,023,485 was allotted to the CeFi companies seeking funding. Infrastructure secured the 2nd highest amount of funds, followed by Gaming, NFT, DeFi, Tool & Information, Social & Entertainment, and DAO. 

Fundraising in Crypto Significantly Declined in 2023- ROOTDATA
Source: Yearly fundraising in crypto from ROOTDATA

Coinbase Venture is one of the most prominent investors that has invested in 11 crypto infrastructure, 16 DeFi (Decentralized Finance), 1 NFT, 2 Games, 2 CeFi, 6 Tool & Information, and 3 in Social & Entertainment. 

If evaluated nationwide, 132 crypto-related companies in the United States have raised funds in Singapore, the Chinese Mainland, Hong- Kong, France, Israel, Japan, India, and several others globally. 

Fundraising in Crypto Significantly Declined in 2023- ROOTDATA
Source: Investment maps of investors 2023 from ROOTDATA

Binance Labs took an interest in 31 companies from all sectors of crypto, including DeFi, CeFi, Gaming, DAO, and several others. Leading gaming giant Animoca Brands has invested in 30 companies, from which it specially made investments in 9 gaming companies. 

Most Hyped Crypto Fundraising in 2023…. 

The crypto financing market encountered significant challenges in 2023, with total investments decreasing by 68% to $10.6 Billion.

Wormhole, a prominent cryptocurrency-based startup, raised $225 Million at a $2.5 Billion value after finalizing its split with a market maker and venture capitalist Jump Crypto.

Amber Group, a CeFi firm focused on asset management, has raised $300 Million in Series C investment.

Infrastructure projects have received the most money over the previous four quarters, with total quarterly spending steadily increasing from 26% in Q4’2022 to 44% in Q3’2023.

The digital asset and blockchain industry had a substantial drop in investments in Q3 2023, with only $1.975 Billion invested, the lowest amount since Q4 2020 and a new cycle low. This ongoing drop began at a peak of $12 Billion in the first quarter of 2022. 

Despite a recent decline in the overall number of agreements, the percentage of deals involving conventional investors has remained consistent.

Farcana, a gaming startup based in the United Arab Emirates (UAE), secured significant funding from Animoca Brands, a firm dedicated to advancing digital property rights in gaming and the metaverse.

Disclaimer

The views and opinions stated by the author or any people named in this article are for informational ideas only and do not establish financial, investment, or other advice. Investing in or trading crypto or stock comes with a risk of financial loss.

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