Overview of Q3' 21 private funding of crypto companies

For a third consecutive quarter, the blockchain/crypto sector saw historic levels of capital allocation by private investors. During Q3, the industry received nearly $8 billion in private investment across 423 total deals or a 21% increase in venture funding Q/Q. In total, venture capital firms have injected roughly $17.8 billion into crypto firms from the beginning of the year through the end of Q3, which equates to more capital than the previous six years combined.

Despite historic levels in dollar volumes, there was a decrease in the number of funding deals, from 584 in Q2 to 423 in Q3, or nearly a 28% decrease. The decline largely came from the Seed & Pre-Series deal types which declined approximately 34% Q/Q, or from 314 deals to 207. The decline suggests that although investors were eager to allocate capital, investors were beginning to see the funding markets as becoming oversaturated with high valuations for new projects. As a result, heading into Q3, investors were more selective with where/what they were allocating funds toward.