Over 80% of early stage startups raised in 2022 are still operating today. This is despite the fact that the crypto market has experienced major crashes that have turned the market dark. According to a new report from venture capital firm Lattice Fund.
inreporton October 1 regarding fundraising for startups. Analysts from Lattice Fund found that of the more than 1,200 crypto startups that raised a combined $5 billion in 2022, 76% were able to launch products on the mainnet, although 18.5% were not. It is no longer in use or is being called upon to shut down.

Lattice said Ethereum’s new protocol, Eigenlayer, was the most successful protocol among startups raising funds in 2022. Although Eigenlayer’s success in executing its go-to-market strategy and delivering a product worth multiple Billions of dollars by 2023 will be a rarity among 2022 startups.
Additionally, only 1.5% of startups achieve what Lattice calls “Product Market Fit” (PMF), a state where a product or service clearly meets a market need. With customers ready to buy, use and recommend to others, only 12% of projects were able to find additional funding rounds.
Centralized infrastructure and finance (CeFi) has proven to be the most successful sector for investment, with 80% of CeFi and 78% of infrastructure projects launching products on the core network.
Meanwhile The game and its metaverse proved to be more of a fad. It has the highest failure rate of any sector.
“$700 million has been invested in gaming. But in the game sector and the Metaverse, it has the highest failure rate. And there will likely be no product launches at all.”
Meanwhile The data shows that Ethereum remains the preferred Layer 1 ecosystem for new projects. Meanwhile, Bitcoin-based projects show the highest failure tolerance.
It invested $1.4 billion into 314 projects using Ethereum, with 18% of these projects failing in the long term.

Meanwhile, 18 Bitcoin startups have raised funding. All of them are still operating and developing today.
As for Solana, despite investing $350 million in 87 startups on Solana, due to several external factors such as the collapse of FTX and the price crisis of the native SOL token (SOL), the price crashed heavily. This leaves 26% of projects unable to proceed until 2024.
Notably, teams on Solana and Ethereum were equally likely to receive subsequent rounds of funding. On the other hand, none of the projects built on Near, StarkNet, and Flow failed to receive subsequent rounds of funding. You can go.
“Investors are currently investing in hotter sectors (such as DePIN and Ai) and ecosystems (such as Base and Monad),” the report said.
refer : cointelegraph.com
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