According to Cointelegraph, despite the lack of liquidity in the crypto market in the summer, crypto VC financing rebounded to $633 million in August, an increase of more than 15% from $550 million in July. According to DefiLlama data, most VC interest is concentrated in blockchain infrastructure development companies.
Luca Prosperi, CEO of M^0 Labs, said that investments in infrastructure, middleware, and application layers are expected to continue. On August 28, VC company Lemniscap raised a new fund of $70 million for early-stage Web3 startups.
AI-related startups attracted most of the attention this summer, but as the AI space reaches saturation, some deep tech investors are returning their focus to the crypto space as they hope for more regulatory clarity after the U.S. election in November.
Covalent CEO Ganesh Swami pointed out that despite the high enthusiasm for infrastructure investment, the encryption application layer still needs more practical use cases to attract VC investment.
