Venture Capital Crypto Funding Shakes Off H1 Blues, Increases 20% in August to $660M 

Crypto venture capital funding has expectedly dwindled during the bear market, but things could be looking up. Funding figures for August were higher than those for July, which may signal a trend change. 

According to the venture capital monthly report from Wu Blockchain, the amount spent on funding has increased. However, the number of projects raising funds has declined. 

Crypto VC Up … And Down

Crypto venture funding totaled $660 million in August. According to the report, this was a 20% increase over the figure for July, which was $550 million.

Nevertheless, it remains down 57% compared to August 2022, with $1.54 billion in VC funding.

The report analyzed findings from the crypto project database RootData. It found that there were a total of 73 publicly announced investment projects in the cryptocurrency VC space in August. 

July had slightly more with 78 investment projects, and August 2022 had 132 projects. Although the investment figure for the month is marginally higher, the VC funding trend is still in decline.

The breakdown of funding share was skewed towards web3 projects, which had almost a third of the total. The DeFi share was around 19%, and infrastructure projects had 14% of the funding. 

Crypto VC Funding August 2023. Source: WuBlockchain

The figures are different depending on which data source is used. According to DeFiLlama, $283 million was spent on funding rounds in August. However, this has dropped from the $460 million reported for July, but it only records 41 investment projects, which is significantly lower than the figures from RootData.

Read more: What’s the Relation Between Venture Capital Investment and Crypto Market Prices?

The Wu Blockchain report said the largest funding round was payment company Ramp, which announced a $300 million round, valuing the company at $5.8 billion. Crypto custody firm BitGo also raised $100 million at a valuation of $1.75 billion.

Two other platforms generating large venture funding in August were Pendle Finance and Maple Finance. Both DeFi platforms have a focus on real-world asset tokenization, which is turning into the next major crypto narrative. 

Investments Still Pouring In

The most recent venture capital crypto fund to raise capital this month is by web3 gaming platform, formerly known as Polkastarter Gaming.  

On September 7, the firm announced the closure of a $2 million seed round led by Mechanism Capital and several other venture capital and angel investors. 

The capital injection will help the platform to scale and grow its gaming “superapp” into the “IGN for Web3 gaming,” according to its investors.

Decentralized exchange Brine Fi announced a $16.5 million funding round on September 7, led by Pantera Capital. 

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