November 2022 was a tough month for crypto fundraising, with the total amount raised dropping 84% year-over-year, according to data from Wu Blockchain.
In fact, this November of 2022 was the worst month for crypto fundraising in two years.
Year-over-Year Drop in Financing
There were only 65 public raises in November, a 55% drop compared to the same period the previous year. Web3 and infrastructure fields saw the most deals, with DeFi accounting for only 11 of the deals.
In terms of dollar amounts, the year-over-year drop was even more severe. Financing fell from $5.25 billion in November 2019 to just $840 million last month. This was the lowest amount of funds raised in nearly two years.
Interestingly, the amount raised in private sales coincided with the all-time-high price for BTC at $69,000.
According to DefiLlama.com, the total amount raised in November 2021 was $7 billion, making it the all-time-high month for crypto fundraising on record.
The chart below shows the correlation between BTC price and the amount raised. It’s clear that fundraising is closely tied to the price of BTC.
Total Funding Raised Since 2014
In total, since 2014, $83.4 billion has been raised through crypto fundraising.
The top five notable raises, due to value destruction, were:
EOS ($4.2 billion)
FTX ($2.1 billion)
Terra’s LFG ($1 billion)
BlockFi ($949 million).
Celsius ($814 million)
In comparison, only $17.3 million was raised during the Ethereum ICO.
Distribution of Funding by Sector
Of the total funding raised, 33.4% went to CeFi companies, followed by infrastructure (27.1%) and Web3 (17.2%).
DeFi has attracted a total of $6.49 billion in funding since 2017, which is less than NFT projects have raised since 2018.
However, DeFi projects have had to go through more funding rounds to raise this money, with 865 rounds for DeFi versus 596 for NFTs.
Funding by Round Type
Arranged by round type, Series B attracted the most cash ($11.5 billion), with FTX as the largest recipient at $900 million.
Series A companies raised $10.5 billion, with MoonPay receiving the largest individual raise at $555 million.
Seed rounds came in third with a total of $8.1 billion, with Yuga Labs’ raise being worth $450 million.
In terms of cash raised per round, DeFi projects managed to raise less than other sectors. The largest raises in the DeFi space went to:
Lithosphere network ($400 million)
BitDAO ($230 million)
Capricorn ($200 million)
Unizen ($200 million)
1inch ($175 million)
and Uniswap ($165 million for Series B).
Conclusion
The data shows that cash is abundant during bull markets and dries up when crypto prices drop. We are currently at a low point in terms of both the number of funding rounds and the amount raised. As a result, projects are struggling to raise much cash and companies are laying off employees.
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