According to data from PitchBook, the crypto venture funding landscape concluded 2023 on a positive note, signaling a renewed interest from investors in the crypto space.
In the final quarter of 2023, venture capital (VC) funding for crypto-related companies reached $1.9 billion, marking a 2.5% increase from Q3 2023, as reported by CNBC. This uptick signifies the first rise in VC investments in crypto startups since March 2022.
Robert Le, a crypto analyst at PitchBook, emphasized a notable correlation between private market investments and the performance of public markets. Le highlighted that “a lot of publicly-traded crypto companies that are up in the last year, and we’re starting to see on the private side that trend as well.”
Despite the overall increase in funding, the number of deals experienced a slight decline of 2.4% in Q4 2023. Le attributed this decline to a concentration of capital, stating that “capital is going into fewer companies in the crypto space.” Notably, the ventures attracting significant funding in the last quarter of 2023 primarily focused on finance tokenization and decentralized computing infrastructure.
The largest deal of the quarter amounted to a $225 million investment in Wormhole, a decentralized protocol for cross-chain swaps. This investment was backed by prominent entities including Coinbase Ventures, Jump Trading, and ParaFi Capital, which recently announced an airdrop for its users. Following Wormhole, Swan Bitcoin and Blockchain.com secured substantial funding amounts of $165 million and $100 million, respectively, according to PitchBook.
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