Funding for blockchain startups fell by 50%

Funding for blockchain startups fell by 50%

Stock Market Crash Soon? (What About Crypto?) – Last Week Crypto

Contents

Funding for blockchain startups fell by 50%
CONTENT

  • Investors interested in financing DeFi projects

  • Funding for startups reduced by half in comparison with March

  • DeFi projects become the most popular on the market

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The coronavirus epidemic, which has led to the collapse of commodity, stock and foreign exchange markets, is forcing investment funds to reduce funding and freeze startup support programs. In April, this figure decreased by 50%.

Investors need tokens

 

Funding for blockchain startups fell by 50%

According to the monthly report of the Web3 fund, only 32 transactions were concluded in April for a total of $ 50 million. This is half the amount in March. The spread of the coronavirus epidemic is forcing investors to cut funding for startups and save money. However, as the report says, there are also positive trends. More and more investors are ready to invest in projects in exchange for tokens, and not for company securities, as it was before.

If we talk about the popularity of projects, then most of the applications for funding came from projects that work in the sector of decentralized finance (DeFiDecentralized finance (DeFi) – this is financial services, technology-based blockchain that offer users access to open, effective and … More) – 38.7%, as well as in the infrastructure construction sector – 12.9%. Note that startups in the field of decentralized finance and financial technologies have attracted about $ 30 million.

How the DeFi market is developing

 

The decentralized finance and financial technology sector is one of the most financially attractive. To date, there are 213 officially registered projects in the world working in the field of DeFi, 199 of them are developed on the Ethreum platform. However, according to experts, the market will develop rapidly, which is happening at the moment..

According to a study by Crunchbase, lending is the most demanded service in the field of DeFi, so 25% of all startups in this industry have concentrated their efforts on developing projects that provide lending with cryptocurrencies. They are followed by projects in the field of banking operations, cryptocurrency exchanges and projects for traders. To a lesser extent, developers focus on asset management, software development for banks, and payment instruments..

The outsiders turned out to be projects that represent solutions for real estate markets, distributed data, supply chains, analytics, e-learning, distributed ledgers, etc..

Funding for blockchain startups fell by 50%

The companies that developed blockchain games should be mentioned separately. BeInCrypto previously reported on several similar projects that looked quite interesting and profitable for investors. However, none of the game development companies raised the necessary funding. The main reason is a shift in the focus of investors’ attention and a reduction in funding.

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