TechFlow news, according to the latest data, venture capital investment in the cryptocurrency sector amounted to only $2.6 billion and $2.1 billion in the first and second quarters of 2023, compared to $20.3 billion during the same period in 2022. This indicates a significant drop in investment this year.
Tony Cheng, partner at Foresight Ventures, pointed out that the lack of new innovation is one of the reasons causing venture capital firms to stay away from the space. He said one of the biggest current issues is a lack of confidence, as there has not yet been genuine innovation in the industry. Although market activity and user numbers remain limited, Cheng remains optimistic about the future, believing that as macro conditions improve, excitement around the next crypto cycle may increase.
When asked whether founders should accept funding offers, Cheng said the most important thing now is ensuring survival, as tight funding could cause projects to shut down. He noted that in a bear market environment, companies should focus on profitability rather than pursuing growth at all costs. Survival comes first.
