A new report published by Galaxy Digital traced the trends in venture capital investing in the crypto industry. The New York-based crypto investment firm found that crypto VC funding has decreased significantly over the past two years.

According to the report by Galaxy Digital, the first quarter of 2023 saw venture capital firms investing $2.4 billion into crypto-related startups and protocols.

Despite being a significant sum, it was actually the lowest investment in crypto in more than two years. Interestingly, while the amount invested had gone down, the number of crypto investment deals actually went up as compared to the last quarter of 2022. Q4 of last year saw 366 deals while the Q1 of 2023 registered a 19% increase with 439 deals. 

Despite an increase in the number of deals being made, the median deal size went down from its all-time high of $4.5 million which was witnessed in the third quarter of 2022.

(By Suzuki Shillsalot)