Crypto Market Experiences 31% Decline In Venture Capital Investments In June

Venture capital investments in the crypto market fell by 31% in June from the previous month, to $520 million. However, cryptocurrency investment product inflows saw a significant increase, marking their highest since July 2022.

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In the latest figures, June 2023 saw a significant 31% dip in venture capital (VC) investments in the crypto market compared to May 2023, with the total amounting to a relatively modest $520.1 million from 83 deals. This downturn also marked a striking 71% drop from the same month in the previous year.

Crypto fundraising, monthly trend
Crypto fundraising, monthly trend (Source: RootData)

Data from analytics firm RootData revealed that June 2023's VC funding in the crypto market was the lowest in recent years. The number of deals also experienced a 14% decrease from May 2023's 97 deals to 83 in June.

Fewer Deals, Lower Totals

Despite this downturn, VCs have funneled more than $4.5 billion into the crypto market over 607 deals in 2023. Yet, compared to the same period in 2022, the investment and deal volume has declined by a significant 65% from $20.4 billion over 910 deals.

The sectors that attracted most investments in June 2023 included:

  • Infrastructure, 31%
  • NFT and GameFi, 20%
  • DeFi, 18%
  • Centralized Finance (CeFi), 8%

Some of the largest investment deals of June 2023 included:

  • Gensyn, a blockchain company developing AI solutions, secured $43 million.
  • Mythical Games, a blockchain game developer, closed a funding round at $37 million.
  • Galaxy Finance raised $30 million for a crypto wallet development.
  • Arkon Energy, a mining company, attracted $26 million for renewable energy development for crypto mining.
  • Insurance company Meanwhile obtained $19 million to develop a Bitcoin life insurance policy.
Top 10 raises, June 2023
Top raises for June 2023 (Image: RootData)

Despite the overall drop in VC funding in the crypto market, CoinShares' analysis highlighted a rise in cryptocurrency investment product inflows, totaling $199 million in June 2023. This is the highest since July 2022, and can be attributed mainly to BlackRock's application for a Bitcoin ETF in the U.S.

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