July 18, 2023

US-Based Crypto Startups Secure 45 Percent of VC Investments in Q2 2023

Crypto Investment

Crypto Investment

Although crypto firms face challenges in the United States, they are still managing to secure investments from venture capital companies.

A recent report by crypto investment firm Galaxy Digital said the US-based crypto startups secured 45% of all venture capital companies that invested in the crypto industry in the second quarter of 2023. Also, the US-based crypto startups accounted for more than 43% of all deals completed.

The UK came in second place with a percentage of 7.7%, followed by Singapore and South Korea with percentages of 5.7% and 5.4%, respectively.

As for the venture capital investments in the crypto industry, the report pointed out that the VC firms invested $2.32 billion in the crypto and blockchain sector in the second quarter of 2023, the lowest since Q4 2020. The report referred to an ongoing downtrend that began after a peak of $13 billion in Q1 2022. Crypto and blockchain startups raised less money across the last three quarters combined than they did in just Q2 of last year.

Meanwhile, the crypto deals in this period witnessed a slight growth. According to the report, deal activity increased slightly in Q2, with 456 deals completed vs. 439 deals in Q1 2023. The slight gains were driven by an increase in Series A deals to 174 vs. 154 in Q1.

It also mentioned that the companies founded in 2021 and 2022 completed the most venture deals in the second quarter of 2023.

Trading, exchange, investing, and lending startups raised the most venture capital money in the second quarter of 2023 ($473 million, 20% of VC investments). Web3, NFTs, gaming, DAOs, and metaverse startups raised the second most capital at $442 million, representing 19% of all venture capital invested in the second quarter of 2023.

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