CandleFocus

Crypto Winter-Era Seed Startups Mostly Persist Despite Tumult and Crisis

The majority of crypto startups that announced seed rounds in 2022 continue to build today, according to a report from Lattice VC. Despite the disasters that occurred in the crypto market in 2022, such as the crashing of Terra-Luna and the problems faced by FTX and crypto lenders, over 80% of the startups that received seed funding in 2022 are still operational. However, only 1% of these teams have found product-market fit, and just 12% have raised follow-on rounds. The report suggests that teams that continue to rely on the crypto market may face challenges in the absence of a bull market. Startups that launched on certain platforms, such as NEAR, Flow, and StarkNet, have failed to secure further funding. The report also highlights that the hype around certain trends in the crypto space, such as NFTs and the metaverse in 2022, may not necessarily translate to long-term success. Instead, trends such as AI and decentralized physical infrastructure (DePIN) may gain more traction in the coming years.

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