Crypto, crypto projects lose $1 billion in venture capital in Q3

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Crypto, crypto projects lose $1 billion in venture capital in Q3

Between the second and third quarters of 2023, venture funding activity in DeFi and crypto projects fell 33%. Last month's deals activity marked the worst September since 2020.

Crypto startups and DeFi projects have just closed their worst quarter since 2020, with the sector securing just north of $1 billion in venture capital across 144 deals between July and September, according to data from DeFiLama.

The number of venture funds at risk is down 50% from the first quarter of 2023, when 228 projects topped up their coffers by a combined $2 billion and 33% from the $1.5 billion bagged by 171 blockchain-based ventures in the second quarter.

Investors have not injected this little capital since the third quarter of 2020 when the industry raised a little over $924 million, according to DeFiLama data.

BitGo raised the biggest deal of the quarter with $100 million in a Series C round at an $1.75 billion valuation.

Other significant deals included Flashbots' Series B of $60 million and Futureverse's $54 million Series A round, both of which occurred in July.

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Tom Carreras, a markets correspondent at DL News, is a market reporter. Adam Morgan McCarthy, the London-based Markets Correspondent at DL News, is the Editor-in-Chief of the DL News.