Crypto Startup Funding Down Two-Thirds, But Founders See Bright Side
A disastrous 2023 for crypto startups hasn’t dissuaded true believers.
Cryptocurrency startups had a brutal 2023, a year beset by scandal that saw fundraising crash to lows not seen in years. Venture capital investment in the crypto industry totaled just $9.5 billion last year, less than a third of what it was in 2022, according to new data from research firm PitchBook.
The fourth quarter was particularly bleak for many startups, even as many in the industry cheered the rising price of Bitcoin. In the last three months of the year, a jury convicted FTX co-founder Sam Bankman-Fried of multiple fraud charges and ex-Binance Holdings Ltd. Chief Executive Officer Changpeng “CZ” Zhao pleaded guilty to money-laundering and sanctions violations, while crypto venture funding fell to $1.8 billion. That’s about half of what it was during the same period in 2022, according to PitchBook.