The amount raised by crypto firms in Q3 totaled just under $2.1 billion across 297 deals, the lowest on both counts since Q4 2020, according to Messari’s latest State of Crypto Fundraising report.

From a peak of nearly $17.5 billion across over 900 deals in Q1 2022, the returns diminished throughout the year as conditions in the crypto industry worsened coming to a head with the sudden collapse of exchange FTX in November.

Despite this, fundraising appeared to hold its own through Q1 and Q2 2023, with around $7.5 billion raised across about 200 deals in both quarters, in line with those of Q4 2022. Both counts however took a 36% hit in Q3.

Messari also highlighted that investors are concentrating on new investments in early-stage projects and infrastructure investments as opposed to user-facing applications.

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