– Funding to private crypto companies fell to its lowest level in a year in the second quarter, according to PitchBook.
– The sector had been set a record of $9.85 billion in venture funds raised in the first quarter, but this was only due to the fact that deals take time to finalize.
– In the second quarter, venture capitalists invested $6.76 billion into crypto companies, a 31% decline from the previous quarter.
– The crypto industry now mirrors the sluggish activity among tech and venture capital investors.
– Many deals have fallen apart, and investors have revoked written offers in recent weeks.
– BlockFi is looking to raise money at a reduced valuation of $1 billion.
– Seed valuations are down about 20%, Series A valuations are down about 50%, and then Series B and beyond are down about 70%.
– Pakman is advising companies he backs to retain enough cash on hand to endure two years worth of hardship.
– Despite the potential of a long crypto winter, some venture capitalists are still committed to the space.