GM 👋
This is the Smoothie Newsletter.
I’m going to be in New York starting Oct 22!
Anyone there? Or any fun events I should go to?
Thinking of hosting a couple things too 🤔
Messari published the State of Crypto Fundraising - Q3 2023 report. And it’s not looking good for web3 startups.
Both deal count and funds raised were down 36% from last quarter.
Time to double down or pivot?
Big move from late to early-stage.
From 37% in Q4 2020 to 48% now.
Late-stage funding (Series B or later) is down to a measly 1.4% in Q3 2023. 📉
This pattern is the same as the last 12 months.
Services functions including marketing, incubators, security, and legal services also received $133M funding.
But this trend may not continue longer as investors are realizing that without successful consumer-facing apps building on top of the infrastructure, it’s hard to generate their desired returns.
DeFi had the most number of deals - 67.
Other subcategories include Interoperability, Mining Operations and support, Oracles, and Validators Operations and support.
54% of all the active investors were based in the United States, in line with the last four years.
Yeah Sam, Right!
Non-custodial credit risk management company Cicada Partners raised $9.70M in a Pre-seed funding round led by Choppa Capital, with participation from Bitscale Capital, Bodhi Ventures, Shiliang Tang.
Web3 social platform powered by Lens Protocol and CyberConnect Phaver raised $7M in a Seed funding round from Polygon Ventures, Nomad Capital, Symbolic Capital (ex Hyperedge Capital), dao5 (daofive), Foresight Ventures, Alphanonce, Factor Ventures, Superhero Capital, Swissborg Ventures.
This is a special newsletter. Every week, we deconstruct the best crypto trends and share those insights with you.