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Crypto funding plunged 71% in Q2

Lucinda Shen
Data: Architect Partners; Chart: Axios Visuals
Data: Architect Partners; Chart: Axios Visuals

Venture capital funding for crypto startups fell again in the second quarter, down 71% from the same period in 2022 and reaching its lowest level since the fourth quarter of 2020, data from Architect Partners show.

Why it matters: Crypto funding is losing steam more quickly than the rest of the venture industry.

By the numbers: Investors put $2.4 billion into the sector in the second quarter, down 14% from Q1.

  • Just six deals raised over $100 million in the first half of the year. The largest was crypto and stock brokerage startup eToro, which raised $250 million from investors including Ion Group and SoftBank.
  • The other nine-digit deals included LayerZero ($120 million), Worldcoin ($115 million), Ledger ($109 million) and Tokhit ($100 million).

Of note: The eToro deal was first agreed upon in 2021 as part of the company's now-broken SPAC deal.

Between the lines: The slide could continue. Ballooning interest in AI has drawn investors away from once-hot sectors like fintech and crypto, and heavy regulatory attention on industry giants Coinbase and Binance has made M&A more challenging.

Editor's note: This story has been corrected to note there have been six deals over $100 million in the first half of the year, not in the second quarter.

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