Investment in crypto projects decreased by 50% due to “Corona”
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Answer Investment in crypto projects decreased by 50% due to “Corona”
The past two months, “March” and “April” were among the most difficult months for the cryptocurrency market in particular and the global financial markets in general.
As a result, crypto startups financed by these investment funds, which are also grappling with the Corona virus, suffered.
According to a report by Source Financing and investment in crypto projects decreased by 50% due to “Corona” as all investment deals fell to $ 50 million from $117 million last month (excluding the $300 million Bakkt deal), which shows the size of the impact of the Corona virus on the investment field. .
stated Source Venture capital funding has been declining since 2019, but this month’s numbers are a stark example of how vulnerable the current economic environment can be to investors.
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With the unemployment rate in the United States due to the Corona virus approaching 15%, fears of a permanent economic slowdown are growing.
Congress and the Federal Reserve have allowed unprecedented stimulus to be pushed into multiple sectors of the economy, but many figures inside and outside venture capital reject the idea.
To make matters worse, it points to much weaker growth prospects for venture capital investments, with little or no support from government sources.
But this does not mean the death of investment in crypto projects, as DeFi projects received great interest in the month of April, and accounted for 40% of the total volume of investments in the field of blockchain and crypto.
In addition to investing in decentralized finance, there is also investment in enterprise infrastructure and blockchain projects, while in the same month in April, no gaming-related financing deals were recorded.
Within the decentralized finance ecosystem, the lending, banking, trading and trading categories have seen many investment fundraising.
Atomic Loans, Cadence, and dForce are among the top funded companies in the defi sector for this month.
Although the overall volume of investment revealed decreased, the number of seed funding rounds actually increased from March 13 to April 16, indicating that there is still interest in early stage investments that can pay off big and good.
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The total number of deals decreased to 32 compared to 39 in the previous month.
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As for the geographical regions that hosted investment deals, we find the United Kingdom with about 21% of the projects, the continent of Europe representing about 14%, and the rest of the world accounted for only 17%.
Anna Yanakieva, an investor in Outlier Ventures, said:
Part of the reasons behind this split may be the available funding.
The US has private funding, the UK and Europe have multiple innovation grant programs along with some private capital from foundations and investors.
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