In Q3, the crypto winter made a significant impact on fundraising, causing it to plummet to its lowest level in three years, as reported by blockchain intelligence firm Messari.
According to Messari’s latest State of Crypto Fundraising report, crypto firms managed to secure just under $2.1 billion across 297 deals in Q3, marking the lowest figures seen since Q4 2020. This decline is striking, especially when compared to the peak of nearly $17.5 billion raised across over 900 deals in Q1 2022. Throughout the year, returns gradually dwindled, ultimately culminating in the abrupt collapse of the FTX exchange in November.
Nevertheless, the resilience of fundraising was evident in Q1 and Q2 2023, during which approximately $7.5 billion was raised across about 200 deals in each quarter, mirroring the figures from Q4 2022. However, both of these counts experienced a 36% drop in Q3.
Furthermore, Messari’s report highlighted a notable trend among investors who are now focusing on new investments in early-stage projects and infrastructure rather than user-facing applications. This shift indicates a strategic approach to navigate the challenging crypto landscape.