DeFi Bucks Crypto Fundraising Slump, Secures $210M: Messari

The crypto industry's fundraising efforts have been successful due to the ongoing crypto winter. Q3 was no different.

According to the latest data, new record lows were set for the total amount of money and the number of discounts during this period, reaching levels not seen since Q4 2020. Figures for the quarter fell short of $2.1 billion in a total of 297 deals, marking 36. % decreased in both categories compared to last quarter.

Among the well-supported sectors is DeFi

According to Messari's report, decentralized finance (DeFi) led the way in the number of funded deals, with a total of 67, while blockchain infrastructure generated the largest amount of funding, accounting for 18% of the total. The gaming sector posted a strong quarter, garnering nearly $250 million in investments.

During Q3, DeFi emerged as the sector with the highest number of projects funded, boasting 68 deals. Investment in this sector is particularly strong, with the exchange category representing 38 percent of all investment capital in 33 deals. In total, Diffie's projects have collectively secured $210 million, with an average deal size of $3 million.

Binance Labs actively participated in the DeFi sector, participating in seven deals during the quarter. This included strategic investments of $10 million each in Helio Protocol, a liquid storage platform on the BNB Chain, and Radiant Capital, a money market built on LayerZero. The biggest DeFi deal of the quarter included a $16.5 million Series A funding round for the order book DEX built on Starkware.

Additionally, three of the top four investors in DeFi, based on consensus count, were closely related to the ecosystem. Binance Labs, Base Ecosystem Fund and Polygon have collectively secured 16 deals during the period.

Binance Labs – the most active investor by far.

Despite struggling through legal battles, Binance Labs emerged as the most active investor for Q3.

Binance's venture capital and incubator arm has 23 deals, more than double the investments of the next closest investor, Robot Ventures. In the year Throughout 2023, Binance Labs has maintained an active investment strategy, focusing on the DeFi and gaming sectors, in addition to showing interest in projects to develop zero-knowledge and privacy technology.

Interestingly, 12 of these agreements involved projects participating in the Accelerated Program. Excluding these acceleration-related investments, the company's remaining 11 investments are still tied to robotics ventures relative to Q3 deal activity.