Crypto Funding Sees a Decrease in Q3, According to Messari Report
A recent report by Messari reveals that funding for the crypto industry has experienced a 36% decrease in Q3 compared to the previous quarter. The majority of fundraising activities have been focused on early-stage rounds, such as Pre-Seed, Seed, and Series A funding, which have seen an 11% increase since Q4 of 2020. However, later stage deals have seen a significant drop from 8% in Q4 2020 to only 1.4% in Q3 this year.
Rise of Strategic Investments
According to the report, strategic investments have become a prominent feature of Q3 funding. As the bear market continues, strategic investments have increased significantly from a 0.2% share in Q4 of 2020 to 22% in Q3 of 2023.
Focus on Chain Infrastructure, DeFi, and Gaming
The report highlights three sectors that have attracted the most funding in the crypto industry: DeFi, chain infrastructure, and gaming. Interestingly, there has been a shift towards investing in infrastructure projects rather than user-facing applications.
Chain infrastructure accounted for the largest share of funding with 18%, while DeFi had the highest number of deals at 67. The gaming sector also witnessed substantial investments with $250 million raised in Q3 of 2023.
Binance Labs Emerges as Top Investor
Binance Labs emerged as the most active investor, participating in 23 deals. This is more than double the activity of Robot Ventures, the next biggest investor. Binance Labs has been actively investing throughout the year, primarily focusing on DeFi and gaming sectors, as well as zero-knowledge and privacy niche.
Hot Take: Crypto Funding Sees a Dip in Q3, Strategic Investments on the Rise
The crypto industry has experienced a decline in funding during Q3, according to Messari’s report. While early-stage rounds have seen an increase, later stage deals have significantly dropped. However, strategic investments have become more prominent as the bear market continues. Chain infrastructure, DeFi, and gaming have emerged as the top sectors for funding, with infrastructure projects gaining traction. Binance Labs has emerged as the leading investor, actively participating in various deals. Despite the decrease in overall funding, the crypto industry continues to attract investments and shows potential for future growth.
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