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Hannah Miller
Crypto startups finally felt the effects of an economic storm that has been cooling digital currencies, public stocks and venture capital all year. Funding to private crypto companies in the second quarter fell to its lowest level in a year, according to data from the research firm PitchBook.
The hype around crypto startups made the sector seem briefly immune to the economic turmoil. It set a record of $9.85 billion in venture funds raised in the first quarter. That was, it turns out, only a factor of how long it takes for venture capital deals to finalize. “Even though the crypto market started slowing down in November, December, those deals were already in discussion, so they closed in the first quarter,” said Robert Le, fintech analyst at PitchBook.
