According to data analysis firm PitchBook, crypto firms saw a substantial year-on-year reduction in venture funding in the first quarter of 2023. In the first quarter of 2023, crypto businesses raised $2.6 billion in global venture capital, a 78% reduction from the first quarter of the previous year and the lowest amount of money invested in the industry since the fourth quarter of 2020. In the first quarter, 353 transactions were completed, a 64.4% reduction from the same period the previous year. Despite the financial downturn, there were some “bright spots” in 2023 Q1, such as layer-2 scaling solutions continuing to attract venture capital. Blockstream raised $125.0 million in convertible notes and debt, while Scroll raised $50.0 million in late-stage venture capital.Significant investments were also made in cryptocurrency custody services, including a large round for Ledger and Taurus.
