• Sun. Dec 3rd, 2023

US Dominates Crypto Startup Funding in Q2: Report

US Dominates Crypto Startup Funding in Q2: Report

Despite facing regulatory scrutiny in the United States, crypto firms continue to innovate, with nearly half of capital investments flowing into US crypto businesses, according to the latest report.

A report published on July 14 by crypto investment firm Galaxy Digital stated that US-based crypto startups have a significant share of interest from venture capital firms.

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

However, the total amount of capital invested in crypto and blockchain startups continued to decline quarter on quarter.

“10 new crypto VC funds raised only $720 million in Q2 2023”, noting that this was the lowest since the start of the COVID-19 pandemic in Q3 2020.

This was followed by the UK claiming 7.7% of capital investment, Singapore 5.7% and South Korea 5.4%.

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

Companies in the “Broad Web3 category” had more deals, while companies in the “Trading category” raised more capital.

Extract from Galaxy Digital’s Q2 report. Source: Galaxy Digital

Related: SEC Accepts BlackRock’s Bitcoin ETF Application, Signaling Regulatory Review

This comes amid the United States Securities and Exchange Commission taking action against several US crypto firms.

Most recently, Ripple accused its native token XRP ( XRP ) of being a security, ruling in Ripple’s favor on July 13 that it was not a security for retail sale.

Cointelegraph previously reported on June 18 that Ripple CEO Brad Garlinghouse believes the SEC is looking to “kill” innovation and the cryptocurrency industry in the US.

In the Ripple case, Hinman argued that the conversation documents are not dealing with “any one token or any one blockchain,” but the SEC’s overall stance toward the crypto industry.

This comes after the SEC took action against major crypto exchanges Coinbase and Binance on June 5th and June 6th just one day apart.

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