Crypto VC funding tumbles as economic uncertainty scares off investors

cointelegraph.com:

The month of June closed out with a 29.73% decrease in venture capital investments, with just $779.32 million raised in 62 individual deals, according to data from the Cointelegraph Research Venture Capital Database. While the United States Federal Reserve halted interest rate hikes in June, the macroeconomic climate remains unchanged due to geopolitical uncertainties and continued efforts to tame inflation across the globe. As the data shows, investors remained cautious and in risk-off mode in June, with the growth trend of the previous three months coming to a halt.

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However, that is not necessarily a bearish signal, as the overall trend for 2023 is still upward. Plus, the recent batch of Bitcoin exchange-traded fund (ETF) applications from the likes of BlackRock, VanEck, WisdomTree and Fidelity as well as Ripple’s legal victory over the Securities and Exchange Commission have helped brighten the mood. The crypto market instantly reacted to those positive events, but VC investments are always a lagging indicator, as institutions tend to be more inert and cautious. It is also important to note that VC activity may be tempered by the uncertainty of overall global economic conditions.

The Cointelegraph Research Venture Capital Database reveals that the breakdown of deals in June didn’t drastically change and that the investment focus of VCs remained relatively stable. Blockchain infrastructure still led the market with 20 individual deals and over $493 million in funding.

Decentralized finance (DeFi) won back some ground with 20 deals and over $144 million invested. Surprisingly, Web3 was less popular for venture capitalists in June, with about $107 million over 18