Galaxy Digital: Cryptocurrency industry received $2.4 billion in venture capital in Q3, down 20% from the previous quarter

Venture capital firms invested $2.4 billion in cryptocurrency startups in 478 deals in Q3, according to a new report from Galaxy Digital. The amount of funding fell 20% from Q2, and the number of deals fell 17%. In the first three quarters of this year, the industry received $8 billion in investment, a far cry from 2021 and 2022, when the industry received more than $30 billion in investment in 3,000 deals each year. "(Institutional) investors' interest in crypto venture capital and broader venture capital has declined compared to previous years," said Alex Thorn, head of research at Galaxy Digital. Thorn said high interest rates have reduced the attractiveness of venture funds, while spot Bitcoin and Ethereum ETFs have provided new ways to invest in cryptocurrencies, and a series of previous crashes have led to a decline in investment interest in the crypto industry. This has made it difficult for venture investors to find large sources of funds to launch new fund vehicles, leading to a tightening of the crypto venture capital market. (CoinDesk)