Global venture funding in August 2023 reached $22 billion, a 19% increase from the previous month but a 16% decrease from July 2022, with late-stage funding experiencing a year-over-year increase for the first time in 18 months, according to Crunchbase data. However, early-stage funding nearly halved and seed funding was down by around one-third compared to the previous year, while deal counts in August 2023 were almost half of the previous year. The largest fundings were in transportation, sustainability, and biotechnology, and the hope for the startup funding landscape lies in upcoming IPOs of well-funded venture-backed companies.
Despite a decrease in venture capital investments in June, new crypto projects are still attracting funding, including Orbital's $6.4 million raise for expanding blockchain payment infrastructure, unshETH's $3.3 million seed round for decentralized finance solutions, ZTX's $13 million funding for Web3 infrastructure development, Stroom Network's $3.5 million raise for Bitcoin staking, and Fxhash's $5 million funding for its digital art platform.
Web3 venture capitalists have established a $20 million fund to invest in blockchain gaming and collectibles projects, as well as other Web3 initiatives.
Blockchain Capital has raised $580 million for two new funds, with $380 million allocated for early-stage companies and protocols, and $200 million for late-stage investments, indicating continued investor interest despite the subdued state of the digital asset market.
Blockchain Capital closes two new funds with $580 million to be invested in crypto gaming and decentralized finance projects, while venture capital firms SkyBridge Capital, Atlas Merchant Capital, and Vector Capital are among the final bidders to acquire SVB Capital, the venture arm of Silicon Valley Bank. Additionally, Nomura launches a new Bitcoin fund, and Citi Token Services provides payments and liquidity through its private blockchain. Hut 8 also receives final approval for its merger with US Bitcoin.
The global blockchain finance market is predicted to become a $79.3 billion industry by 2032, driven by the disruptions caused by the COVID-19 pandemic and the potential for reduced operational costs, with collaborations and acquisitions being heavily explored as a top strategy by market players.
Global venture funding in Q3 2023 reached $73 billion, marking a slight increase from the previous quarter but a 15% decline compared to the same period in 2022, with seed and early-stage funding continuing to decline while late-stage funding increased, particularly in strategic sectors such as semiconductors, AI, electric vehicles, and sustainability. The IPO markets also showed signs of easing, with two venture-backed startups going public in September for the first time in 18 months. Additionally, AI companies raised over $10 billion in Q3, and late-stage funding saw growth outside of North America, particularly in Asia and Europe. However, the global funding slowdown persisted, with a 42% decline year over year in the first three quarters of 2023.
The blockchain gaming industry received $600 million in venture capital investment in Q3 2023, a 38% decrease from Q2, bringing the total funding for the year to $2.3 billion; however, this is only 30% of what was raised in 2022, while the broader gaming industry has been hit hard with over 6,100 job losses.
Investments in blockchain gaming reached $600 million in the third quarter of 2023, with a total of $2.3 billion invested in the sector this year, despite lower investment levels compared to 2022.
