Messari – State of Crypto Fundraising, 3Q 2023

In the third quarter of 2023, there was a significant decrease in the amount of funding and number of deals in the crypto industry. This drop is reminiscent of the bear market experienced in late 2020. The total funding for the quarter was just under $2.1 billion, which is a decrease of 36% compared to the previous quarter. Additionally, there were only 297 total deals, which is also a 36% decrease. Investors have taken advantage of the bear market to focus their investments on early-stage projects. This indicates a shift in strategy during the downturn. Investments in infrastructure projects continue to surpass those in user-facing applications, suggesting a greater emphasis on building the foundations of the crypto ecosystem. Over the past year, the chain infrastructure and decentralized finance (DeFi) sectors have consistently received the highest amounts of funding. Despite the ongoing bear market, these sectors have remained resilient and attractive to investors. Overall, the fundraising data in the crypto industry reflects the current market conditions. Q3 2023 further demonstrates the downward trend that started in early 2022, reaching new lows in both funding amounts and deal counts.