Where is the money? The steep drop in VC funding across the board for Crypto teams is pretty stark. Even if the data in the chart below isn’t showing the entire picture, we can probably expect at least a 60 – 70% drop in startup funding this year.
Some possible reasons for the decline include:
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Many crypto projects raised funds during the bull cycle and have enough runway for years
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Not enough new, compelling teams to fund
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Private market valuations haven’t come down enough yet
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A natural correction from the hype cycle and excesses of 2021 – 2022.
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VCs shifting focus towards other “hot” sectors, like AI. Paradigm is one example.
Startups find themselves in a challenging fundraising environment today and need to run a tight ship. Survival is the name of the game.
