USA Emerges as Global Hub for Crypto Startups

In spite of undergoing regulatory scrutiny in the USA, crypto companies persist in pushing the boundaries of innovation.

A recent report by Galaxy Digital, a crypto investment firm, reveals that nearly half of all capital investments are being directed towards U.S.-based crypto businesses. The report, published on July 14, highlights the substantial interest shown by venture capital firms in supporting these startups.

Related: Why the SEC Holds Key Importance in the Crypto World in 2023?

“US-based crypto startups accounted for more than 43% of all deals completed and raised more than 45% of the capital invested by VC firms.”

Out of the total capital investment in the crypto industry, the United Kingdom secured 7.7%, while Singapore and South Korea attracted 5.7% and 5.4% respectively. However, it is important to note that the overall amount of capital invested in crypto and blockchain startups has been decreasing from one quarter to another.

The report highlighted that only $720 million was raised by 10 new crypto venture capital funds in the second quarter of 2023. This represents the lowest amount since the onset of the COVID-19 pandemic in the third quarter of 2020.

“Crypto and blockchain startups raised less money across the last three quarters combined than they did in just Q2 last year.”

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