Cryptocurrency VC funds plummet by 50%! 25% of active institutions have basically left the market  In the past few years, the overall financing activity in the cryptocurrency venture capital market has declined by about 50%. There are three main reasons: one ⃣ Large scale withdrawal of top institutions About 25% (12 to 13) of the top 50 most active leading investment firms from 2021 to 2023 have essentially abandoned cryptocurrency assets. Four companies have almost stopped investing due to fraud or risk control failures. Alameda Research and Three Arrows Capital have completely cleared out, while DWF Labs and Shima Capital have both dropped from 26 to 3. About 9 companies voluntarily chose to retreat. The most typical one is Tiger Global, which has gone from 23 transactions to zero; Coatue, Republic Capital, Arbitrarum Foundation, and Hypersphere have all been reset to zero. Sequoia Capital has reduced its portfolio from 24 to 2, Lightspeed has reduced its portfolio from 11 to 4, Infinity Ventures Crypto has reduced its portfolio from 10 to 1, and Digital Finance Group has reduced its portfolio from 11 to 2. two ⃣ The remaining institutions' fundraising scale has shrunk Among the 38 relatively active institutions, 32 are traditional venture capital funds. Among them, only 5 publicly announced smaller new funds, only 2 announced expansion, and the vast majority of institutions have not announced any new funds in the past two years. Typical cases of scale reduction: 1kx has shrunk from $200 million to $75 million, Hack VC has shrunk from $150 million to $77 million, and Archetype has shrunk from $150 million to $100 million. Only a few have expanded in scale: BITKRAFT has expanded from 220 million to 275 million, and Jump has expanded from 200 million to 350 million. three ⃣ The proportion of encryption funds has decreased Many funds no longer have encryption as their sole or core allocation direction: Paradigm's previous fund almost exclusively invested in cryptocurrency, and the newly raised $1.5 billion fund covers both AI and robotics tracks. A16z's Fund V has a scale of up to 28 billion US dollars, but it is already a comprehensive technology fund, not a cryptocurrency specific fund. Animoca Brands' new fund of $100 million has changed its focus compared to the previous round of $325 million. ▪️ About 25% of top institutions have completely withdrawn, and the vast majority of still active institutions have not raised new funds. At the same time, the proportion of cryptocurrency funds has decreased, and the triple pressure has jointly caused a capital contraction of about 50% in this round.