In Q2 2023, cryptocurrency companies from the United States attracted 45% of all venture capital investments sent to the industry. Companies from the United Kingdom (7.7%) and Singapore (5.7%) ranked second and third, respectively.
Investment company Galaxy Digital published a report showing the state of VC funding for crypto companies in Q2 of this year. According to their data, the total amount of funding was approximately $2.32 billion. This figure is slightly behind the Q1 indicator.
However, investor activity slightly increased. A total of 456 deals were closed, compared to 439 deals in Q1. Of these, 73% were early-stage deals (Pre-Seed, Seed, and Series A). U.S.-based cryptocurrency firms also lead in the number of completed deals (43%) and in raised funds (45%). The U.S. is followed by Singapore (7.5%), the United Kingdom (7.5%), and South Korea (3.1%) in terms of completed deals.
The average amount of venture capital funding for cryptocurrency companies in Q2 2023 was $3 million, with an initial estimate of $17.93 million. During the same period, ten new VC funds focused on the cryptocurrency market raised just $720 million, the lowest since Q3 2020.
The most sought-after area of investment was trading, exchange, investment, and lending startups, which raised 20% of all capital ($473 million). Web3, NFT, Gaming, DAO, and Metaverse startups ranked second, attracting 19% of investments ($442 million). The situation is the opposite regarding the number of deals — companies in the Web3, NFT, Gaming, DAO, and Metaverse spheres rank first, followed by trading, exchange, investment, and lending companies. The biggest growth in the number of deals compared to the previous quarter was demonstrated by firms developing privacy products (275%) and infrastructure projects (114%).
According to a recent study by PwC, most hedge funds plan to boost their investments in crypto-assets. Moreover, 55% of American citizens aged 18 and under chose crypto as their first financial investment.
