Venture capitalists have been under fresh scrutiny for their role hyping up the crypto industry during the criminal trial of FTX co-founder Sam Bankman-Fried, but new data shows that those investors have pulled back sharply from the industry they once helped build and promote.
Global venture funding for crypto startups plunged to its lowest level since 2020 during the third quarter, tumbling 63% from the same period last year, according to data from research firm PitchBook. VCs invested just $2 billion in crypto worldwide during the quarter, a fraction of the funds they invested during happier times in the crypto world.
“We aren’t seeing the big deals anymore,” PitchBook analyst Robert Le said. “That’s one of the drivers of the decline – deals are smaller.”
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