Startups

Coinbase, Crypto Startups Cut VC Investing as Downturn Lingers

Even crypto companies are pulling back on crypto venture capital. 

Lock
This article is for subscribers only.

Coinbase Global Inc. is one of the most important investors in the world of cryptocurrency. It’s the all-time biggest backer of industry startups in terms of number of deals, according to PitchBook data. But in recent months, its investing activity has fallen off.

The decline is part of a larger pullback from investing at crypto companies — which often have substantial venture capital arms. While overall crypto venture funding tumbled 63% to $2 billion in the third quarter compared to the same period last year, many corporate VC businesses cut back even more rapidly, said PitchBook crypto analyst Robert Le.