Venture capital (VC) investment in crypto companies has continued to decline in the first quarter of 2023, according to a report by Galaxy Research, the research arm of crypto investment firm Galaxy Digital. VC investments amounted to $2.4 billion, representing an 80% decline compared to the same period last year. However, the number of deals made increased by almost 20%, and the report suggests that there may be a correlation between crypto prices and VC investment.
Despite regulatory turbulence in the US, the country remains the top destination for crypto firms raising capital, with US-based companies raising 42.8% of the VC money flowing into crypto in Q1 2023. The report also revealed that France-based crypto firms received 19.4% of capital investments, up from less than 5% in Q3 2022.