Binance Research, the market analytics arm of cryptocurrency exchange Binance, recently released a report titled 'Exploring Crypto Fundraises'. The report compiles data on fundraising trends, venture capital (VC) participation, and funding distribution across various categories of crypto-based businesses.
The boom in crypto fundraising experienced in 2021 and early 2022, where funding peaked at an impressive US$6.8B in April 2022 - a 361.8% increase from January 2021 - went through a significant drop by Q3 2022. Although there has been a steady trend of seed funding, which rose by a hefty 47.9% in the last quarter, overall total deals have seen a decline since their peak in Q1 2023. Despite fewer deals overall, seed-funded projects constituted over 30% of the investments, indicating that numerous projects are still in their early stages of development.
Alongside these trends, Binance Research's report highlighted the integral role traditional VCs have begun to play in the emerging Web3 ecosystem. From the start of 2023, conventional VCs' share in investments rose by a substantial 45%, narrowing the gap considerably between themselves and formerly leading Web3 investors. Later paragraphs injected special emphasis on one such traditional VC entity, Hack VC, which was recognized for diversifying its investments across sectors, most notably in gaming and infrastructure.
The report also demonstrated that infrastructure had been the most funded category over the last four quarters, slowing but consistently rising from a 26% share of total quarterly funding in Q4'22 to a robust 44% in Q3'23.
With insights structured around these vital takeaways, Binance Research's report provides an authoritative landscape view of how crypto fundraising is shaping up, despite recent market instability. This kind of rigorous analysis emphasizes Binance's commitment to fostering a strong cryptocurrency ecosystem and helping investors navigate this dynamic and rapidly evolving field.