Categories: Trending now

Crypto Firms Bagged $2.6 Bln in 2023 Q1 Investments, Number Down by 78 Percent from 2022: Pitchbook

A total of 353 funding rounds fetched $2.6 billion (nearly Rs. 21,390 crore) towards start-ups working in the crypto sector in the first quarter of 2023, between January and March. Interestingly, the figures of both, the investment rounds and the capital raised, have shown a decline of 78 percent and 64.4 percent, respectively, from last year’s first quarter. This shows that the crypto sector still remains appealing enough for venture capitals to pour hefty finances in related companies, but the slowed-down second half of 2022 has affected incoming funding into the sector.

PitchBook, a finance-focussed research firm, in its recent report claimed that the first quarter of 2023 became the fourth consecutive quarter of declining investment activity. This essentially means that between April 2022 and March 2023, fundings directed towards crypto-related projects have remained low in comparison to previous years.

“After the collapse of FTX and a wobbly few months of fluctuating valuations, crypto has stabilised. But Q1 2023 also marked the lowest amount of capital invested in the vertical since Q4 2020,” the report said.

In the second half of 2022, over $200 billion (roughly Rs. 16,33,290 crore) was wiped off the global crypto market after promising projects like Terra and FTX collapsed due to liquidity crunches.

In the aftermath of these project downfalls, indirect impacts affected the traditional crypto-friendly banks in the US as well.

Since 2021, the valuation of the crypto sector has also fallen from its highest point of $3 trillion (roughly Rs. 2,46,86,250 crore) to its current capitalisation of $1.14 trillion (roughly Rs. 93,54,177 crore), as per CoinMarketCap.

The ups and downs in the crypto market, constant hack attacks and scam fears along with the lack of regulations to govern the sector are among major reasons why the industry lost its financial stronghold in recent years.

The 2023 Q1 investments have spiked by 33 percent in crypto startups as compared to the same month frame last year.

PitchBook’s report has highlighted that late rounds of investments grew by a whopping 209 percent between January and March this year, as compared to the same time last year.

“That number may be skewed due to a lack of disclosure on down rounds,” the report explained.

The chances of bagging an investment is still high for crypto firms, especially those working around privacy, data management, and security for Web3 protocols.

Several companies have launched investments pools in past months in order to incubate a lucrative crypto ecosystem.

Bitget, a Seychelles-based crypto exchange, for instance has decided to invest $100 million (roughly Rs. 819 crore) in promising Web3 initiatives emerging from Asian nations.

Companies like Solana, Binance, and Animoca among others are pouring heavy funding in Web3.


Google I/O 2023 saw the search giant repeatedly tell us that it cares about AI, alongside the launch of its first foldable phone and Pixel-branded tablet. This year, the company is going to supercharge its apps, services, and Android operating system with AI technology. We discuss this and more on Orbital, the Gadgets 360 podcast. Orbital is available on Spotify, Gaana, JioSaavn, Google Podcasts, Apple Podcasts, Amazon Music and wherever you get your podcasts.
Affiliate links may be automatically generated – see our ethics statement for details.
News Today

Recent Posts

LA Dodgers’ Shohei Ohtani becomes the first MLB player with 50-50 season : NPR

2024-09-20 09:35:03 Los Angeles Dodgers' Shohei Ohtani reacts after hitting his 50th home run of…

5 mins ago

An intoxicating timelessness: Pianist Artina McCain with Orchestra Nova Northwest

2024-09-20 09:25:03 Pianist Artina McCain with Orchestra Nova Northwest. Photo courtesy of ONN. Orchestra Nova…

15 mins ago

Early red card hampers Barcelona in Champions League loss to Monaco

2024-09-20 09:15:03 MONACO (AP) — Barcelona’s perfect start to the season ended with a 2-1…

25 mins ago

Jets lead Patriots in fourth quarter

2024-09-20 09:05:02 The New York Jets host the New England Patriots in a matchup of…

35 mins ago

NY Jets vs New England Patriots postgame updates: Final score, analysis

2024-09-20 08:55:02 EAST RUTHERFORD − From start to finish, the Jets had this game under…

45 mins ago

Watch: Sofia Vergara Eating Hamburger At Emmys 2024 Is The Coolest Thing On Internet Today

If you love a good burger, looks like you have something in common with Sofia…

1 hour ago