There were 83 public investments by crypto VCs in June, and the total funding in June was $520 million.
This is down 14% month-on-month and down 44% year-on-year.
The infrastructure category accounts for about 31% of funded projects, DeFi about 18%, CeFi about 8%, and NFT/GameFi about 20%.
According to WuBlockchains monthly report, there were 83 public investments by crypto VCs in June, down 14% month-on-month (97 projects in May 2023) and 44% year-on-year (149 projects as of June 2022).
Among crypto market segments in June, the infrastructure category accounted for about 31% of funded projects, DeFi for about 18%, CeFi for about 8%, and NFT/GameFi for about 20%.
Total funding for June was $520 million, down 32% month-on-month (total $760 million in May 2023) and down 71% year-over-year ($1.81 billion total) in June 2022).
Source: WuBlockchain
As you can see, only some startups are raising capital at all stages. And with that comes a slowdown in hiring, signs of layoffs, and company closures that are still increasing due to the impact of market crises.
Venture capitalists have maintained a trend that began in 2022 amid scandals affecting the crypto sector. News of regulatory uncertainty, market downturns, and unprecedented crashes were the headwinds that drove venture capitalists out of the industry.
At the beginning of June, consecutive lawsuits against the two largest cryptocurrency exchanges in the market, Binance and Coinbase by the SEC, shook the cryptocurrency industry while blowing billions of dollars in assets of the SEC billionaires in this industry.
Additionally, venture capital firms may be less interested in investing in a highly volatile industry with the Fed still mulling over rate hikes.
However, the market seems to be recovering gradually, and there is a good chance that venture capital funding could increase later this year of the significant impetus that came from the wave of Bitcoin ETF spot fund registrations that have led Bitcoin to surge above $30,000, along with the overall improvement of the market. Also, when the US inflation rate falls, the financial sector can regain stability, undoubtedly attracting more funding.