Global venture funding for cryptocurrency-related companies has hit its lowest level in two years.
A technician inspects cryptocurrency mining rigs in Saint Hyacinthe, Quebec.
Photographer: Lars Hagberg/AFP/Getty ImagesHannah Miller
Venture capitalists are continuing to pull back from crypto, an industry that’s been plagued by scandals, a market downturn and regulatory uncertainty. Private funding for crypto startups in the first quarter of this year plunged to its lowest level since 2020, according to data from research firm PitchBook.
Global VC funding for the industry fell to $2.4 billion in the quarter, an 80% decline from its all-time high of $12.3 billion during the same period last year, according to PitchBook. The drop is “not a surprise,” said PitchBook crypto analyst Robert Le, who noted that venture investing has dwindled across the board this year. In addition to rising interest rates, the first quarter also saw the unraveling of Silicon Valley Bank, an institution widely relied on by venture-backed companies.
