Crypto Fundraising Hits 3-Year Low as Firms Struggle to Raise Capital: Messari

The amount raised by crypto firms in Q3 fell to just under $2.1 billion, across 297 deals, the lowest on both counts since Q4 2020

AccessTimeIconOct 5, 2023 at 11:00 a.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

The crypto winter hit fundraising in Q3, which fell to its lowest lowest level in three years, blockchain intelligence firm Messari found.

The amount raised by crypto firms in Q3 totaled just under $2.1 billion across 297 deals, the lowest on both counts since Q4 2020, according to Messari's latest State of Crypto Fundraising report.

  • Bitcoin Mining in the U.S. Will Become 'a Lot More Decentralized': Core Scientific CEO
    13:18
    Bitcoin Mining in the U.S. Will Become 'a Lot More Decentralized': Core Scientific CEO
  • Why Core Scientific is Focused on 2028
    00:57
    Why Core Scientific is Focused on 2028
  • Bitcoin, Ether Rise Amid ETF Steam in Hong Kong; Solana's Latest Update
    02:14
    Bitcoin, Ether Rise Amid ETF Steam in Hong Kong; Solana's Latest Update
  • Bitcoin Whales Yet to Resume Accumulation: IntoTheBlock
    01:06
    Bitcoin Whales Yet to Resume Accumulation: IntoTheBlock
  • From a peak of nearly $17.5 billion across over 900 deals in Q1 2022, the returns diminished throughout the year as conditions in the crypto industry worsened coming to a head with the sudden collapse of exchange FTX in November.

    Despite this, fundraising appeared to hold its own through Q1 and Q2 2023, with around $7.5 billion raised across about 200 deals in both quarters, in line with those of Q4 2022. Both counts however took a 36% hit in Q3.

    Messari also highlighted that investors are concentrating on new investments in early-stage projects and infrastructure investments as opposed to user-facing applications.

    Edited by Parikshit Mishra.



    Disclosure

    Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

    CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

    Jamie Crawley

    Jamie Crawley is a CoinDesk news reporter based in London.


    Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.



    Read more about