From the end of 2021 into mid-2022, the money faucet for crypto projects was on full blast. Startups raised $10.7 billion in the first quarter of 2022 alone, according to Crunchbase. But that stream turned to a trickle in 2023, as crypto founders raised approximately $6.7 billion across all four quarters.
A regulatory crackdown from the U.S. federal government, a crypto bear market, and a down year for venture capital writ large all contributed to a parched funding landscape, but the money faucet wasn't completely turned off.
