VC funds pumped $481 million into crypto startups in June

Crypto startups raised $481 million from venture capital (VC) funds in June, a 38.2% drop from the total raised in May. As usual, investments in infrastructure providers made up the majority of funding last month, but were overtaken by decentralized finance (DeFi) and blockchain gaming.

After surpassing $1 billion in funding in March as Bitcoin hit an all-time high, venture capital inflows into the cryptocurrency sector have declined month after month. While down just 2.6% from the previous quarter, total funding in June was down 52.8% compared to March.

Of the total amount raised last month, crypto startups building infrastructure solutions garnered over $331 million in investments, accounting for 69% of all funding received from VCs. Modular blockchain infrastructure company Avail was responsible for the most successful funding round during this period, raising $43 million in a round led by Dragonfly Capital, Founders Fund and Cyber ​​Fund.

Another notable funding round was conducted by M^0, a decentralized money middleware that enables institutions to issue stablecoins, which raised $35 million from firms including Bain Capital, Wintermute, and GSR.

Notably, startups building applications for the DeFi ecosystem received around $71 million, up almost 50% from May. Restaking hub Renzo raised a private funding round with $17 million allocated from 13 different VC funds.

The blockchain gaming sector has also seen increased interest from venture capital funds, with funding surging from $27 million to $43 million between May and June, a 59% month-on-month increase, mainly driven by several venture capital funds strategically allocating $20 million to The Sandbox.

After rising 153% in May, investments in Web3 general applications fell 32% to a total of $32.8 million. Bondex, a platform focused on Web3 professional networking, received a total of $10.5 million after conducting a public token sale and a private investment round.