Crypto Startup Funding Plunges 70% as Bear Market Dries Up Later Stage Deals

Venture capital funding for crypto startups fell to $2.1B in Q3 2022, down 70% from Q3 2021.

Seed funding made up the largest category at $488M over 98 deals. Later stage deals dried up.

Strategic financing jumped to 22% of deals from 0.2% in Q4 2021 as projects did bridge rounds or got acquired.

Despite bear market, US investors did 54% of deals, more than rest of world combined.

Investors shifted from user-facing apps to blockchain infrastructure, but may swing back as infrastructure needs apps.