Key Insights on Crypto Industry Fundraising in Q3 2023
- The cryptocurrency industry raised $2.1 billion via 297 rounds of funding in Q3 2023—the lowest amount since Q4 2020.
- Peak fundraising in the crypto industry was observed in Q1 2022 with over $15 billion raised.
- Sectors with the most fundraising activity in Q3 2023 were blockchain infrastructure and decentralized finance (DeFi).
- Binance Labs emerged as the top investor in the latest quarter, closing more than double the deals of its closest competitor.
Crypto Industry Fundraising Trends
A recent report highlighted a decline in crypto industry funding due to regulatory uncertainties in the U.S. and ongoing legal proceedings involving key industry figures.
Current State of Crypto Industry
Despite Bitcoin’s price surge, the 36% decrease in fundraising from Q2 to Q3 2023 suggests that the crypto bear market persists.
Blockchain Infrastructure and DeFi Highlights
Blockchain infrastructure projects secured the largest share of funding, while the DeFi sector saw the highest deal closures and investment activity.
- Scaling solutions in the blockchain infrastructure sector attracted 43% of the total funding.
- Exchanges in the DeFi sector led in both deal numbers and funding amounts.
Investment Activity in Q3 2023
Binance Labs led investment activities in the crypto industry, focusing on DeFi, gaming, and technologies related to privacy and zero-knowledge.
The top 10 investors collectively accounted for only 7% of all fundraising deals, reflecting the industry’s diversity in funding sources.
Challenges in the Crypto Industry
The bear market in the crypto industry persisted in Q3 2023, influenced by regulatory uncertainties and legal challenges faced by major industry players.
Legal actions against prominent exchanges and industry figures, alongside potential new regulations, have impacted investor confidence and industry growth.