Q1 crypto VC funding fell 50% to $4B, Galaxy reports

Venture capital investment in the blockchain and cryptocurrency industry totaled approximately $4 billion in the first quarter, a nearly 50% decrease from the previous quarter, according to an analysis by crypto asset manager Galaxy. CryptoPotato reported that Galaxy's recent findings show a total of 355 deals were made in Q1, a 16% drop in volume. The report attributed the sharp decline in total funding to the failure of large, late-stage investment rounds that took place in the fourth quarter of last year. Instead, there was a notable increase in smaller seed and early-stage investments. By sector, the exchange, investment, and lending category attracted the most capital with approximately $2.6 billion, followed by wallet startups, which raised $270 million.