{"id":1677,"date":"2023-06-06T07:32:14","date_gmt":"2023-06-06T07:32:14","guid":{"rendered":"https:\/\/cryptofunding.vc\/?p=1677"},"modified":"2023-06-06T07:32:15","modified_gmt":"2023-06-06T07:32:15","slug":"crypto-startups-experience-sharp-decline-in-venture-capital-funding-in-2023","status":"publish","type":"post","link":"https:\/\/cryptofunding.vc\/crypto-startups-experience-sharp-decline-in-venture-capital-funding-in-2023\/","title":{"rendered":"Crypto Startups Experience Sharp Decline in Venture Capital Funding in 2023"},"content":{"rendered":"\n<p>Fundraising within the cryptocurrency realm has experienced a significant deceleration during the initial half of this year. Based on data from PitchBook, a report by Fortune reveals that merely eight venture capital funds with a focus on crypto managed to raise a total of $500 million globally as of May 16. This figure accounts for a mere 2.3% of the overall funds raised in 2022, indicating a substantial decline of 90% in the number of financially supported funds.<\/p>\n\n\n\n<p>The scarcity of funds can be attributed to the ongoing downturn in the crypto industry, marred by various scandals. The uncertainty surrounding future regulations, coupled with the reverberations caused by a crisis within the banking sector, has also dampened the enthusiasm for fundraising activities.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>Fallen crypto lenders, and a fall in VC funding<\/strong><\/h4>\n\n\n\n<p>The November crash of cryptocurrency exchange FTX triggered a series of events that continue to impact the industry. The failure of crypto-friendly Silicon Valley Bank marked the beginning of a chain reaction in 2023, with Silvergate Bank and Signature Bank subsequently following suit. These failures reverberated throughout the crypto community, causing significant shockwaves.<\/p>\n\n\n\n<p>As a result of the banking crisis, regulatory bodies have intensified their scrutiny of crypto platforms, fostering increased uncertainty regarding the sector&#8217;s future. In a significant development on June 5, the US Securities and Exchange Commission filed a lawsuit against Binance, the world&#8217;s largest crypto exchange, alleging multiple securities violations.<\/p>\n\n\n\n<p>The prevailing atmosphere surrounding cryptocurrencies has dampened enthusiasm for investment. According to PitchBook data, global venture capital funding for crypto experienced an 80% plunge in the first quarter of 2023 compared to the previous year, dropping from $12.3 billion to $2.4 billion.<\/p>\n\n\n\n<p>Additionally, overall venture capital activity has declined due to a global economic slowdown, registering a year-over-year plummet of 53% in the first quarter.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Fundraising within the cryptocurrency realm has experienced a significant deceleration during the initial half of this year. Based on data from PitchBook, [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":1678,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[17,16],"tags":[],"class_list":["post-1677","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-vc-funds","category-venture-capital"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v21.3 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Crypto Startups Experience Sharp Decline in Venture Capital Funding in 2023 - Crypto Funding<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/cryptofunding.vc\/crypto-startups-experience-sharp-decline-in-venture-capital-funding-in-2023\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Crypto Startups Experience Sharp Decline in Venture Capital Funding in 2023 - Crypto Funding\" \/>\n<meta property=\"og:description\" content=\"Fundraising within the cryptocurrency realm has experienced a significant deceleration during the initial half of this year. 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