Investments in emerging cryptocurrency companies increased to $1.9 billion during Q4

PitchBook revealed that total venture funding for cryptocurrency-related companies during the fourth quarter of 2023 reached $1.9 billion, an increase of 2.5% from the previous quarter.

This is the first time that venture capital investments in emerging cryptocurrency companies have risen since the second quarter of 2022.

According to CNBC, the report explained that these statistics “are welcomed by entrepreneurs in the field of cryptocurrencies who have been affected during the past two years by the so-called (cryptocurrency winter), which made it difficult for founders to raise funds.”

Project funding for cryptocurrency companies declined significantly in 2022 after rising interest rates from major central banks sent investors fleeing riskier assets such as technology stocks and cryptocurrencies.

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The problems for cryptocurrency projects that year were exacerbated by major collapses of cryptocurrency companies such as Do Kwon’s controversial algorithmic stablecoin Terra and Sam Bankman Fried’s FTX company.

Major investment funds such as Andreessen Horowitz, Sequoia Capital and Tiger Global were hit hard by the decline in cryptocurrency deals. In some cases, such as the fall of FTX, funds have been forced to write off their entire stake.