Crypto, crypto projects lose $1 billion in venture funding since 2020

Crypto, crypto projects lose $1 billion in venture funding since 2020

Venture funding activity in DeFi and crypto projects fell 33% between the second and third quarters of 2023. Last month's deal activity marked the worst September of 2020.

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

From the first quarter of 2023, venture funding is down 50% from the second quarter - when 228 projects topped 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's biggest deal was in August when it secured $100 million in a Series C round at an $1.75 billion valuation.

Other notable deals include 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, an DL News markets correspondent, is covering the markets. DL News' London-based Markets Correspondent, Adam Morgan McCarthy, is on the news desk at DL News.