According to blockchain intelligence company Messari, the third quarter’s fundraising suffered from the crypto winter and reached its lowest level in three years.
According to Messari’s most recent State of Crypto Fundraising report, crypto businesses raised a total of little less than $2.1 billion across 297 deals in Q3, which is the lowest on both counts since Q4 2020.
From a peak of approximately $17.5 billion across over 900 agreements in Q1 2022, the returns decreased throughout the year as conditions in the cryptocurrency business deteriorated, reaching a climax with the abrupt collapse of exchange FTX in November.
In spite of this, fundraising seemed to continue through Q1 and Q2 2023, with roughly $7.5 billion raised over 200 deals in both quarters, comparable to Q4 2022. However, both counts suffered a 36% decline in Q3.
Messari further emphasised that rather than user-facing applications, investors are focusing on fresh investments in early-stage companies and infrastructure investments.