{"id":17847,"date":"2024-10-17T14:22:33","date_gmt":"2024-10-17T11:22:33","guid":{"rendered":"https:\/\/forklog.com\/en\/crypto-startup-funding-declines-by-20\/"},"modified":"2024-10-17T14:22:33","modified_gmt":"2024-10-17T11:22:33","slug":"crypto-startup-funding-declines-by-20","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/crypto-startup-funding-declines-by-20\/","title":{"rendered":"Crypto Startup Funding Declines by 20%"},"content":{"rendered":"

Total venture funding for crypto startups fell by 20% in the third quarter compared to April-June, amounting to $2.4 billion, according to Galaxy Digital<\/a>.<\/p>\n

Compared to the same period last year, the figure rose by 21.5%. The reduction in funding was accompanied by a 17% decrease in the number of deals, down to 478.<\/p>\n

\"1-1263\"
Data: Galaxy Digital.<\/figcaption><\/figure>\n
\n

“The stagnation is explained by the focus on Bitcoin with <\/em>ETFs<\/em> and the minor activity from meme coins, which [\u2026] have questionable ‘stability’,”<\/em> the review states.<\/p>\n<\/blockquote>\n

This led to “minimal interest” from major players and a “sluggish” market throughout the year.<\/p>\n

Currently, a typical investor’s portfolio consists of high-cap coins like Bitcoin, Ethereum, and speculative meme coins. Meanwhile, “second-tier” tokens and projects, which often seek venture funding, are overlooked, experts noted.<\/p>\n

Galaxy Digital emphasized that this trend has led to a “disruption” of the long-standing correlation between the price dynamics of digital gold and the funds raised by startups.<\/p>\n

\"2-919\"
Data: Galaxy Digital.<\/figcaption><\/figure>\n

Experts warned that the situation could be cemented by the growing popularity of Ethereum ETFs, which remains “minimal”. This would further deter venture investors from DeFi and Web3.<\/p>\n

In the third quarter, the largest share of funding went to early stages\u2014 <\/em>85% of the total amount, indicating the long-term health of the entire ecosystem.\u00a0\u00a0<\/p>\n

\"3-518\"
Data: Galaxy Digital.<\/figcaption><\/figure>\n

The majority was accumulated by teams from exchanges, trading companies, and developers of L1<\/span>. Startups integrating AI increased their raised funds fivefold compared to the previous quarter.<\/p>\n

\"4-330\"
Data: Galaxy Digital.<\/figcaption><\/figure>\n

Among the largest investment rounds were Sentient ($85 million)<\/a>, CeTi ($60 million), and Sahara AI ($43 million)<\/a>.<\/p>\n

Crypto firms from the US received 56% of venture funding, followed by Singapore and the UK at 8.7% and 6.8% respectively. The top five is rounded out by the UAE and Switzerland.<\/p>\n

\"5-209\"
Data: Galaxy Digital.<\/figcaption><\/figure>\n

Analysts forecast an increase in investments in crypto startups over the next two quarters due to lower interest rates and the potential for more lenient regulation.<\/p>\n

Earlier, experts from Pitchbook noted the resilience of DePIN<\/span> to bear markets due to strong fundamentals and applications across various industries.<\/p>\n

For more on how the sector operates and why it has attracted particular attention from investors, read ForkLog’s material:<\/p>\n","protected":false},"excerpt":{"rendered":"

Total venture funding for crypto startups fell by 20% in the third quarter compared to April-June, amounting to $2.4 billion, according to Galaxy Digital. Compared to the same period last year, the figure rose by 21.5%. The reduction in funding was accompanied by a 17% decrease in the number of deals, down to 478. Data: […]<\/p>\n","protected":false},"author":1,"featured_media":17846,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"","news_style_id":"","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[770,167],"class_list":["post-17847","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-galaxy-digital","tag-research"],"aioseo_notices":[],"amp_enabled":true,"views":"18","promo_type":"","layout_type":"","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/17847","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/comments?post=17847"}],"version-history":[{"count":0,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/17847\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media\/17846"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=17847"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=17847"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=17847"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}