Blockchain-based startups received the most funding in the crypto sector from venture capitalists (VC) during the third quarter (Q3) of this year, according to a report by Reuters on Tuesday, citing data from research firm Pitchbook.
Per the report, blockchain-focused products and services platforms received the most funding, with roughly $879 million invested across 24 deals during the quarter.
VCs Target Blockchain-Focused Startups
The latest report revealed that some blockchain-focused startups received the biggest deal in the sector with single funding during the quarter. The report mentioned Mysten Labs, which secured $300 million in a Series B funding round in September, and Aptos Labs, which received $150 million in a fundraiser in July.
According to analysts at Pitchbook, both platforms are expected to compete with major players like Ethereum and Solana.
The report added that decentralized finance (DeFi) and Web 3 were the primary targets of early-stage startup funding from some of the top private investors in Q3 2022.
VC Funding Drops for the Third Consecutive Quarter
Meanwhile, the report shows that overall venture funding has plummeted for the third consecutive quarter this year due to the extreme market conditions triggered by the recent FTX debacle.
Overall venture capital funding declined for the third consecutive quarter to $4.7 billion across 153 deals, a 32% drop from the second quarter’s $6.9 billion across 244 deals, according to the report.
“Still, we note there are areas of the cryptocurrency ecosystem that are less exposed to trading activity, which could be less impacted by the fallout from FTX,” Pitchbook analysts said.
The report also revealed several other hot sectors for VC funding during the quarter, which included financial technology and accounting; both sectors received $737.4 million across 24 deals during the third quarter. The biotechnology sector received $725.8 million across 11 deals, the report said.
The Pitchbook’s report tracked “153 early and seed-stage deals that involved the top 15 VC firms out of 5,997 total deals” during the third quarter of this year.
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Source: https://coinfomania.com/blockchain-focused-startups-raised-879m-from-vcs-in-q3-report/