Venture capital in crypto projects down sharply over a year

According to PitchBook, the crypto startups have raised 2.4 billion dollars at T1 20234 times less than in T1 2022. A level from funding that this nascent industry had not reached since 2020.

The VCs have moved a little further away from the cryptocurrency sector in the first quarter of 2023, reports Wednesday Bloombergwho compiled the data from PitchBook

Level of funding for crypto startups since 2020

In Q1 2023, the crypto projects have collected 2.4 billion dollars compared to $12.3 billion in the same period last year, a drop of more than 80%.

In 2022, the crypto ecosystem was battered with the collapse of prices on the market, the implosion of Terra and numerous bankruptcies including that of the giant FTX in November. However, it must also be taken into account that venture capital investment has declined in almost all sectors over the past 12 months.

This year, the courses are back on the rise with Bitcoin at around $30,000 today. In recent news, fundraising amounts are still often lower than those seen last year, but Pitchbook data still suggests a recovery With investments up month over month in Q1 2023.

We will slowly start to see investors become more comfortable,” commented Robert Le, an analyst at Pitchbook.

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