Crypto VC Funding Plunges 68% in 2023, from $33.3Billion in 2022.

According to a new report, cryptocurrency venture capital (VC) funding experienced a significant decline in 2023, with a 68% decrease in funding compared to the previous year. In 2022, $33.3 billion was invested in crypto VC funding, but in 2023, that number dropped to $10.7 billion. However, despite the decline, 2023 still saw the third-highest total crypto investments, surpassing the figures seen during the bear markets of 2019 and 2020. The shift in investment stages was another notable trend, with more investment going towards pre-seed, seed, and Series A startups, while mid and later-stage funding decreased. The sectors most invested in were NFT/gaming, infrastructure, and Web3. The number of crypto VC deals also declined by 32% in 2023 compared to 2022, with 1,819 deals made. However, despite the decrease in funding and deals, there is still cautious optimism in the industry, with investors focusing on the long-term potential of blockchain and cryptocurrencies. Looking ahead, venture capitalists expect to see an increase in investments and transactions in 2024.