Recent research conducted by the crypto market intelligence firm Messari has revealed that crypto fundraising in the third quarter of 2023 declined to levels last seen in the final quarter of 2020., the last quarter recorded new lows in both funding amounts and deal counts. The overall funding for Q3 sat under $2.1 billion across 297 deals, indicating a 36% decline in both categories from Q2 2023.
Furthermore, strategic funding deals have been increasing amid the bear market. Such rounds saw significant funding from corporate and private equity deals. The total funding share for strategic deals rose to 22% in Q3 2023 from 0.2% in Q4 2021, suggesting that unfavorable market conditions are causing projects to raise short-term bridge rounds or get acquired by larger projects.
“The services sector, defined by complementary business functions such as marketing, incubators, security, and legal services, was the only other sector to average over $100 million in funding over the last 12 months. While other sectors are important to growing the crypto industry as a whole, these four sectors continue to attract the majority of investor attention,” Messari said.
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