Cryptocurrencies
Crypto Megafunds Strike a Comeback Following Low Deal Flow
- Crypto VC firms with big raises defend their slow deal pace
- VCs have seen big changes in venture market since crypto surge
Venture capitalists dramatically reined in their investing, with funding for crypto startups plunging to $9.5 billion last year.
Photographer: Erhan Demirtas/BloombergThis article is for subscribers only.
During the last crypto bull market, a small number of investment firms raised massive digital asset funds worth at least $1 billion, spurring optimism and hype around blockchain.
But the crypto downturn presented significant challenges for these investors, as the industry’s market capitalization shed trillions of dollars amid the chaos. Venture capitalists dramatically reined in their investing, with funding for crypto startups plunging to $9.5 billion last year, less than a third of what it was in 2022.