Venture capital (VC) investments in crypto startups have dropped 37% in Q3 from the same period last year at USD4.44bn. According to research firm PitchBook, the funding drop is even more severe compared with the highs of Q1, when venture capitalists poured a record USD8.83bn into crypto and blockchain companies. PitchBook analyst Robert Le said that in the depths of crypto winter, investors are not really excited about crypto, especially generalist investors. In 2021, Le said a lot of capital was raised with companies that don’t even have use cases yet. Investors are also interested in gaming platforms, where the use case for web 3 technology is more immediate. Le said that investors are excited about advertising opportunities in the virtual worlds being built by gaming companies.
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