Crypto VC Funding Bounces Back Setting Stage for Market Comeback
- Crypto VC funding demonstrates resilience, recovering from a downturn with $872 million invested in February 2023.
- Venture firms are targeting web3, gamefi, DeFi, and DLT investments amid market recovery.
- Top crypto-focused VC firms include the likes of A16Z Crypto, Binance Labs, and Multicoinr.
According to a recent report, the crypto venture capital (VC) market has shown resilience amid a downturn, signaling a potential comeback for the sector in the near future. Despite a decline in the second half of 2022, the year became the biggest in history for crypto VC funding with over $26.2 billion invested, compared to $25.1 billion in 2021.
The top 300 global crypto VC firms collectively manage $83.9 billion in capital, with San Francisco emerging as the leading city for crypto VC firm capital, followed by New York City, Hong Kong, Singapore, Austin, London, and Shanghai.
While Q4 2022 saw a significant 77% drop in new crypto VC investment compared to Q1 2022, the market appears to be recovering. February 2023 saw $872 million invested in crypto and blockchain firms, a 52% increase from the $574 million in January 2023.
The report continued that crypto VC …
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