Crypto startups faced a startling setback in August as venture funding plummeted to less than $500 million, marking the lowest point in over two years, according to data from The Block Research.
This decline marks the fourth consecutive month of dwindling venture funding volumes in the crypto space, reflecting a stark contrast to the exuberant investments witnessed in recent years.
Venture capitalists are adopting a more cautious approach, demonstrating a noticeable shift in sentiment. Tom Schmidt, managing partner at crypto VC firm Dragonfly, noted in a report that investors are taking their time, carefully selecting promising projects while being mindful of the exuberant valuations that characterized the market in previous years.
Many startups that raised enormous sums at inflated valuations are now struggling to secure funding in 2023, unless they undertake substantial restructuring efforts. While pre-seed and seed funding…
