Cryptocurrency Exchange Bitget Releases Report on Blockchain Funding
Cryptocurrency exchange Bitget has published a report on blockchain funding trends from 2022 to Q3 2023. The report highlights gender disparities in the VC ecosystem and reveals that blockchain startups received a total of $27.85 billion during this period, with a 70% decrease per quarter. Female-led Web3 startups only attracted 6.34% of the total funding, experiencing a significant drop since 2022. However, there was a slight increase from 8.3% in 2022 to 8.6% in 2023, indicating potential growth in the future.
Factors Contributing to Gender Disparities in Funding
The report suggests that several factors contribute to the lower funding received by female startups compared to their male counterparts. These factors include market trends, investor sentiment, and general bias. Investor bias, which is prevalent in both traditional finance and the crypto industry, accounts for 90% of the disparity. Additionally, the bearish market conditions in 2022 and regulatory restrictions further impacted funding for Web3 startups.
Bearish Market Conditions and Regulatory Restrictions
The bearish market conditions in 2022 resulted in declining asset prices, investor sentiment, and low on-chain volume. This, coupled with regulatory restrictions following the collapse of Terra Network and FTX, led to a decrease in investor participation in the crypto industry. Funding dropped by 61.6% in 2022, with the lowest quarterly figure standing at $1.97 billion.
Addressing Gender Bias and Promoting Inclusivity
Bitget’s Managing Director, Gracy Chen, expressed the company’s commitment to changing the status quo and promoting an inclusive environment where talent and potential are the sole criteria for funding, regardless of gender. The report’s findings highlight the need for a more inclusive ecosystem that provides equal opportunities for all individuals in the transformative crypto sector.
Hot Take: Closing Thoughts
The report by Bitget sheds light on the gender disparities in blockchain funding and the challenges faced by female-led Web3 startups. While there has been a slight increase in funding for female startups, the overall figures are still significantly lower compared to their male counterparts. The industry needs to address investor bias, market trends, and regulatory restrictions to create a more inclusive environment. By fostering equal opportunities and recognizing talent regardless of gender, the crypto industry can drive greater adoption and innovation. It is crucial for companies like Bitget to lead the way in promoting inclusivity and breaking down barriers for female entrepreneurs in the blockchain space.
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