The current rate of new cryptocurrency fund launches is far lower than during the heyday of 2017

According to Crypto Fund Research, 25 new venture capital and hedge funds were launched in the first quarter of this year, the most since the second quarter of 2021. This is twice the number of funds closed in the same period and almost three times the nine funds that appeared in the first quarter of 2023. Due to the impact of the bear market, the number of new cryptocurrency funds barely exceeded the number of closed funds last year. According to Crypto Fund Research, the current pace of new cryptocurrency fund launches is much lower than the heyday of 2017, when about 73 new funds were launched each quarter, more than twice the total number of crypto funds that year. In addition, financing for new funds is still not as easy as before. In venture capital, the scale of financing for new funds tends to be smaller than in 2021 and 2022 because there are fewer new investors entering the field. According to VisionTrack, only $2.62 billion was invested in 631 venture capital transactions in the first quarter. That’s down from the $2.9 billion invested in 781 deals in the same period last year, and well below the $7.2 billion invested in 817 deals in the first quarter of 2021. (Bloomberg)