Crypto Startups Secure $1.9 Billion in Venture Capital in the Fourth Quarter of 2023

Venture capitalists boosted their investment in crypto and blockchain firms by 2.5% in the fourth quarter of the previous year. This increase in VC funding within the sector is linked to the introduction of spot Bitcoin ETFs in the United States.

As reported by PitchBook, crypto firms secured $1.9 billion in venture capital across 326 transactions in Q4 2023, reflecting a 2.5% increase quarter-over-quarter.

This marks the first rise in venture capital investment in the crypto space since March 2022. Nevertheless, in comparison to the prior year, crypto companies garnered 68.2% less funding, and the number of transactions fell by 48.8%. Throughout 2023, crypto startups accumulated $9.3 billion in 1,643 deals, whereas in 2022, venture capitalists contributed $29.2 billion to the crypto sector across 3,211 transactions.

During Q4 2023, the majority of investments were directed towards cryptocurrency firms focused on tokenizing real-world assets and advancing decentralized computing infrastructure. Notable deals from the quarter include:

• Wormhole, a cross-chain bridge for Solana, secured $225 million.
• The cryptocurrency exchange Swan Bitcoin raised $165 million.
• Together AI, an artificial intelligence startup, obtained $102.5 million.

Analysts at PitchBook attribute the heightened interest from investors in crypto companies to the involvement of traditional finance giants such as BlackRock in the crypto market. In January 2024, the launch of spot Bitcoin ETFs in the United States generated significant attention, which began to build at the end of 2023.

Сообщение Crypto Startups Raise $1.9 Billion in Venture Funding in Q4 2023 появились сначала на CoinsPaid Media.