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DeFi loans are withdrawing venture capital, although fundraising for crypto has declined sharply

May 17, 2020

A report published by the venture capital research firm Ana.vc has a Crypto funding of venture capital funds decreased 57% in April.

Despite the decline in total investment The decentralized credit sector seems to continue to flourish with an increase of 150% of the total in March.

Crypto fundraiser drops in April

The report excludes the increase made by Bakkt and identifies 32 exposed deals totaling nearly $ 50 million, compared to $ 117 million last month.

DeFi loans are withdrawing venture capital, although fundraising for crypto has declined sharply
DeFi loans are withdrawing venture capital, although fundraising for crypto has declined sharply

“”The crypto winter is not over yet and it’s not completely immune to macroeconomic trends since most of the business is done with capital, ”the report said.

Ava.vc found it Decentralized finance and fintech (DeFi) continue to dominate general financing, with 40% of the monthly total that the crypto sector has collected for the second month in a row.

The second largest segment of the crypto sector, measured in terms of total sales, was companies building a blockchain infrastructure with 12.9%, followed by companies with 9.7% and the market with 6.5%.

The investment activity around DeFi loans is increasing

While most sectors within cryptos suffered heavy donation losses in April, DeFi new lending companies announce capital increase of 56%up to $ 4.84 million, compared to $ 3.1 million in March.

Increased capital transactions although the total increases in the entire DeFi sector, almost 60% fell: From $ 46.21 million to $ 19.35 million.

Within DeFi, Payment companies were hardest hit 82.6% percent decrease: from $ 9.4 million in March to $ 1.61 million.

However, The stock exchanges saw the highest decline in fundraisingThis corresponds to a decrease of 73.8% compared to the largest DeFi segment with USD 12.34 million to only 3.23%.

Despite the media hype, blockchain games didn’t make deals in April

Almost half of the fundraisers were in the United States, and over 80% of the business was in the United States, the United Kingdom, and Europe.

The report notes that despite the strong publicity of blockchain-based gaming platforms through crypto-specialized media No blockchain gaming company was able to complete financing deals in April.

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