Crypto startups received $777 million from VC funding in May
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Crypto startups received $777 million in investments from venture capital (VC) funds in May, according to data aggregator Defilama. That's a 17% slide from the total amount raised in April, and the second straight month of VC capital slowing.
Projects focused on building blockchain infrastructure received $630 million last month, representing 81 percent of the total raised during the period. However, this is $100 million less than the total capital inflows into this sector in May.
Farcaster has secured the largest infrastructure funding round at the time, with $150 million in investments from names like Alternative Fund, a16z Crypto and Paradigm.
Bitcoin (BTC)'s decentralized financial ecosystem has received attention from VCs, with BTC staking protocol Babylon raising $70 million from relevant players such as HashKey Capital, Polychain Capital and Galaxy.
Despite a three-fold increase between March and April, funding led by decentralized finance (DeFi) startups fell to $50 million in May. The biggest funding round in DeFi came from Fortunafy, a real-world asset token protocol that received $9.5 million.
In particular, the non-convertible token (NFT) sector saw a new influx of VC money in May, as utility NFT platform Galaxies raised $10 million from ChainLink and four other investors.
Web 3-focused apps posted a 153% month-over-month increase last month, raising $48 million in funding as interest from venture capital funds grew. Kiosk, a Farcaster client that integrates social and blockchain, has raised $10 million from VCs and secured the largest funding in the sector.
Blockchain Gaming rounded out the list with investments of nearly $27 million, a slight jump from the $24.7 million held in April. Param Labs has received $7 million from VCs like Animoca Brands, Delphi Digital and Mechanism Capital.
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