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.
“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.”