Crypto Venture Capital Trends and Fundraising in Q1 2023
Summary
This report reviews crypto and blockchain venture activity in the first quarter of 2023 using PitchBook data, which may be revised because venture deal reporting is delayed. It tracks invested capital, deal counts, funding stages, company founding years, headquarters, deal sizes, valuations, sector categories, and new fundraises. Capital invested fell to its lowest level since late 2020, while deal counts rose from the prior quarter, largely through a rebound in pre-seed activity. Median deal size and pre-money valuation also declined.
The report finds that US-based companies led both deal volume and capital raised, while trading, exchange, investing, and lending firms raised the most capital and Web3-related categories recorded the most deals. It interprets the pullback in the context of rising rates, crypto market weakness, and failures of venture-backed firms, while suggesting that early-stage activity and some newer or renewed categories remained active. These are descriptive quarterly observations and forward-looking interpretations, not a forecast; the data is subject to revision and reflects one market period.
Key ideas
- Crypto startup investment declined in Q1 2023 even as the number of deals increased from the prior quarter.
- The increase in deal count was driven largely by pre-seed rounds.
- Trading, exchange, investing, and lending firms raised the most capital, while Web3-related firms led deal count.
- US-based companies accounted for the largest shares of deals and capital raised.
- The report attributes fundraising pressure partly to rising rates, crypto market weakness, and failures among venture-backed companies.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.