Crypto companies collected $ 2.6 billion in the first quarter of 2023, but there is a catch: report
Crypto companies collected $ 2.6 billion in the first quarter of 2023, but there is a catch: report
A new report by the global capital market data platform PitchBook showed that cryptofocussed companies collected $ 2.6 billion in 353 investment rounds in 353 investment rounds.
The raised amount meant a decline in the total number of deals by 12.2 % or 11 % compared to the previous quarter or the deal value. It also represented the fourth quarter in a row with a declining investment activity, since the amount of the invested capital and the completed business has represented the lowest level since the fourth quarter of 2020.
crypto startups collected $ 2.6 billion in the first quarter
Despite the declining investment activity in the fourth quarter in a row, there were positive views for the cryptor room in the first quarter of 2023.
The pitchbook crypta supervisory point showed that the evaluation trends were mixed, with the seed, late and early days rounds at different levels in the quarter. While the seed and late-stage rounds increased by 33.3 % or 209 % compared to 2022, the Early-Stage rounds broke up by 16.7 %.
The $ 2.6 billion that have collected startups as part of 353 deals are a decrease of 78 % and 64.4 % compared to the previous year. The report shows that risk capital companies were able to complete many business despite the continuing crypto winter and could make considerable investments in the crypto range.
While Pitchbook predicted that the decline could probably last, the company mentioned some positive incidents in this area in the first quarter of 2023.
L2S continues to investigate investments
Layer-2 (L2) scaling solutions continued their dynamics from 2022 by putting on more investments. Pitchbook quoted block stream, a Bitcoin scaling platform that recorded a change of conversation and debt worth $ 125 million for the establishment of a Bitcoin mining infrastructure. The project had previously secured $ 163 million in August 2022 in a financing round of series B.
In addition, PitchBook Scroll, a company mentioned a company that developed a knowledge-free scaling solution for Ethereum Virtual Machine (ZKEVM) and collected $ 50 million in a late financing round.
In addition to scaling solutions,Crypto -negotiation services also received significant investments because the demand for self -storage increased. The hardware wallet manufacturer Ledger secured $ 109 million in a financing round of the Collar series to optimize and expand its wallet production. The French hardware company, which is behind Wallets like Nano S and Nano X, intends to carry out two more rounds before the end of the year.
The Swiss crypto company Taurus also collected $ 65 million in a series B round under the direction of well-known financial institutions, including Credit Suisse and Deutsche Bank to improve and expand its platform.