According to data analytics company PitchBook, crypto companies suffered a dramatic year-over-year drop in venture capital in the first quarter of 2023.
PitchBook notes in a new quarterly report that crypto companies raised $2.6 billion in global venture capital in 2023 Q1, a 78% decline from the first quarter of last year and the lowest amount invested in the industry since the fourth quarter of 2020 .
The company also reveals that crypto companies closed 353 deals in the first quarter, representing a 64.4% drop from the number of deals in the same period last year.
PitchBook says the $2.6 billion raised in 353 deals in the first quarter represents an 11% drop in deal value and a 12.2% drop in the number of deals quarter-over-quarter.
Despite the monetary drops, PitchBook notes there are some “bright spots” in 2023 Q1. The company says tier-2 scale solutions continued to attract venture capital, “continuing momentum as of 2022.”
“Bitcoin scaling platform Blockstream has raised a $125.0 million convertible bond and debt round and will use the funds to build out Bitcoin mining infrastructure. The company previously raised $163.1 million Series B in August 2022.
Scroll, which is building a zero-knowledge Ethereum Virtual Machine (zkEVM) scaling solution, raised $50.0 million in late-stage VC (venture capital) in the first quarter. Crypto custody services also received significant investment, including a significant round for Ledger, which raised $493.0 million Series C, and Taurus, which raised $65.0 million Series B.
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