Despite the ongoing bear market in the crypto industry, venture capital (VCs) firms are still actively investing, according to PitchBook’s Crypto Report for Q1 2023. The report revealed that crypto companies have raised $2.6 billion across 353 investment rounds in the first quarter of the year. However, the report also noted that the industry is not as strong as it used to be, with an 11% decrease in quarter-on-quarter deal value and a 12.2% decrease in total deals.
The crypto industry has been going through a rough patch, but the fact that VCs are still investing in the space shows that it is still alive and well despite the “crypto winter.” The report’s mixed valuation trends suggest that investors are more cautious in their approach, with early-stage rounds down 16.7% compared to the previous year.
Despite the overall decrease in deal value and total deals, the report revealed some positive trendsIn the first quarter of 2023, seed rounds increased by 33.3%, while late-stage rounds saw an increase of 209.2% compared to the entire year of 2022.
The report’s findings suggest that while the crypto industry is facing challenges, there is still hope for a recovery in the future. The fact that VCs are still investing in the space shows that they have faith in the long-term potential of the industry.
Overall, the PitchBook report highlights the need for caution when investing in the crypto industry. Investors need to be aware of the risks involved and conduct their due diligence before making any investments, despite the existence of opportunities for growth and success.