US 'dominates' funding for crypto startups in second quarter: report

US-based crypto startups attracted 45% of all VC funds invested in the crypto industry , followed by the United Kingdom (7.7%). and Singapore (5.7%).

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Despite regulatory scrutiny in the US, crypto firms continue to innovate, with nearly half of all capital investment going to US crypto firms, according to a recent report.

Published by crypto investment firm Galaxy Digital on July 14, the report indicated that US-based crypto startups had a significant share of interest from venture capital (VC) firms.< /p>

“U.S.-based crypto startups accounted for over 43% of all closed deals and raised over 45% of capital invested by venture capitalists.”

The United Kingdom absorbed 7.7% of capital investment, while Singapore and South Korea attracted 5.7% and 5.4% respectively.

However, it was noted that the total amount of capital invested in crypto and blockchain startups continued to decline quarter over quarter.

“Only $720 million was raised by 10 new crypto venture funds in the second quarter of 2023,” he noted, pointing out that this is the lowest level since the beginning of the COVID-19 pandemic in the third quarter of 2020.

“Crypto and blockchain startups raised less money in the last three quarters combined than they did in the second quarter of last year.”

It was also noted that while companies in the "broad Web3 category" had more deals, companies in the "commercial category" raised more capital.

Excerpt from Crypto & Blockchain Venture Capital - Q2 2023 showing total number of venture capital deals and total capital investment since Q1 2016. Source: Galaxy Research

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