Crypto Venture Capital Trends and Fundraising in Q2 2023
Summary
This report examines crypto and blockchain venture investment, deal activity, startup valuations, company categories, geography, and fund fundraising in the second quarter of 2023. Using PitchBook data, it finds that invested capital continued to fall even as deal count rose slightly. Early-stage rounds accounted for most investment activity, while median pre-money valuations declined. Trading, exchange, investing, and lending companies attracted the most capital, whereas Web3-related categories led deal counts. U.S.-based companies represented the largest share of both deals and funding.
Fund formation also weakened: the quarter had few new crypto fund launches and a low total raised, while average and median new fund sizes were down across the first half of the year. The report interprets these patterns as evidence of a difficult fundraising environment, with higher rates, crypto market losses, and past company failures weighing on investor appetite. It suggests the wider venture downturn also matters, so the results are not unique to crypto. Deal data may be revised because venture reporting lags, and the analysis describes one quarter rather than predicting future performance.
Key ideas
- Crypto venture investment declined in Q2 2023 even as the number of completed deals increased slightly.
- Early-stage rounds made up most of the quarter’s investment activity.
- Trading-related companies raised the most capital, while Web3 categories led deal counts.
- U.S.-based startups dominated reported deal activity and capital raised.
- New crypto fund launches and fundraising were weak, and delayed reporting may change the figures.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.