Funding for Crypto Startups Falls 82.5% YOY, to Its Lowest Level in Two Years

1 min read

According to a report of Wu Blockchain, Crypto startups raised $660 Million in VC funding in December 2022 – down 21.5% compared in November (2022), and 82.5% in December 2021 ($3.76Billion).

December 2022 saw 50 crypto VC public-investment projects. This was a 23% drop from November 2022 (65 projects), and a 68% decrease from December 2021 (135 projects). The lowest funding levels in December over the past two years were also seen.

In December 2022, infrastructure crypto firms received 22% of funding. CeFi, DeFi, NFT/GameFi and CeFi were responsible for 8%, 18%, 16%, respectively.

Aztec Network was the most funded crypto company, with $100 million. It is a L2 privacy solution that uses ZK Rollup. Fleek protocol raised $25 million and Web3 startup Nillion $20 million after Aztec.

Haun Ventures was able to secure the largest funding of $1 billion for 2022. Huobi Global came in second place with $1B in funding. Flow ecosystem takes third with $750M in funding.

Bullish optimism and funding booms for non-fungible tokens and decentralized finance projects led to record venture capital investments in Blockchain startups reaching $25.2 billion in 2021. In 2022, however, funding slowed due to the collapse of many firms such as Three Arrows Capital hedge fund, lender Celsius Network and FTX exchange giant.

VC funding has diminished globally

Global venture capital funding for November 2022 was $252 billion, down 69% compared to November 2021’s $70 billion and down 19% month over month.

While deal-making declined, crypto suffered a difficult year, Web3 was still able to attract investment and outperformed fintech and other tech.

$18.3 Billion has been invested into the space until Q3 2022. That’s more than $13.4 million.

Via this site


About the Author

Chris Munch is a professional crypto writer, researcher, and journalist with extensive experience in the cryptocurrency and blockchain space. With a passion for innovation, Chris brings a unique and insightful perspective to the world of crypto and blockchain. He has written numerous articles and research papers on a variety of topics, including market analysis, investment strategies, and the latest developments in the industry. With a background in finance and economics, Chris has a deep understanding of the economic and financial forces that drive the crypto market. He is constantly researching and studying the latest trends and technologies, ensuring that he is always up-to-date on the latest developments in the industry. Chris’ writing is characterized by his ability to explain complex concepts in a clear and concise manner, making it accessible to a wide audience of readers. In addition to his writing, Chris is also a sought-after speaker and commentator on crypto and blockchain-related topics. He has appeared on numerous podcasts, webinars, and other events, sharing his knowledge and expertise with audiences around the world.

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