Crypto Venture Capital Funding Shows Signs of Recovery
In the midst of a bear market, crypto venture capital funding has experienced a decline. However, there may be a glimmer of hope on the horizon. Recent data suggests that funding figures for August surpassed those of July, indicating a potential trend reversal.
Crypto VC Up … And Down
In August, the total crypto venture funding reached $660 million, marking a 20% increase from July’s $550 million. Despite this improvement, the current funding amount remains 57% lower than the figure for August 2022, which stood at $1.54 billion.
An analysis of the crypto project database RootData reveals that there were 73 publicly announced investment projects in the crypto VC space during August. While this is slightly lower than July’s 78 projects and August 2022’s 132 projects, the overall trend still suggests a decline in VC funding.
Web3 projects received the largest share of funding, accounting for nearly a third of the total. DeFi projects followed with a 19% share, while infrastructure projects secured 14% of the funding.
The highest funding round in August was led by payment company Ramp, which raised $300 million at a valuation of $5.8 billion. BitGo, a crypto custody firm, also secured $100 million with a valuation of $1.75 billion. Other significant funding recipients were Pendle Finance and Maple Finance, both focused on real-world asset tokenization.
Investments Still Pouring In
The most recent crypto venture capital fund to raise capital this month is Gam3s.gg, a web3 gaming platform. The company closed a $2 million seed round led by Mechanism Capital and various other venture capital and angel investors. This funding will support the platform’s expansion and development into a leading “IGN for Web3 gaming.”
Additionally, decentralized exchange Brine Fi secured $16.5 million in funding led by Pantera Capital.
Hot Take: The crypto venture capital landscape may be experiencing a recovery, with funding figures for August signaling a potential trend change. While the overall funding amount remains lower compared to the previous year, it is encouraging to see an increase from the previous month. This suggests that investors are still willing to support promising projects in the crypto space despite market volatility.
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