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Crypto venture funding firms hit 150 in July, lowest since 2020
The July count was down 87% from the May 2022 peak of 1,177 monthly investors, and the second-quarter total fell to 651 firms.
Crypto funding rounds in July drew just 150 unique venture capital firms, the lowest monthly count since November 2020, according to CryptoRank data through July 28, cited by The Defiant.
The pool of crypto backers has compressed sharply since the last bull market, with CryptoRank recording 1,177 investors participating in a single month at the May 2022 peak. That implies participation has fallen 87%.
The quarterly data points to the same trend, with 651 firms participating in crypto rounds in the second quarter, down about 75% from 2,564 in the second quarter of 2022.
The article notes the shrinking number of participants does not necessarily mean less capital, pointing to large firms continuing to fund infrastructure and real-world asset plays, including Dragonfly’s $650 million fourth fund that closed in February. It also highlights Dragonfly managing partner Haseeb Qureshi’s view that blockchain VC could face a “mass extinction,” arguing dedicated crypto venture capital may lose its purpose by 2030 if dominant platforms capture more users and liquidity. The open question is whether market recovery or U.S. legislative clarity could bring back a longer tail of smaller funds, or whether crypto venture has permanently consolidated into an insider-driven market.