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## Current Challenges for Crypto and Blockchain Startups

Crypto and blockchain startups have been facing several challenges when it comes to raising funds. These difficulties can be attributed to various factors including the overall slowdown in funding, a stronger focus on due diligence, concerns over the macroeconomic environment, and regulations in the U.S.

## Relief in August, But Dependent on Big Rounds

On the surface, the month of August seemed to bring some relief to startups in the crypto and blockchain space. Venture capitalists invested a total of $819 million across 91 companies, marking a 51% increase compared to the $542.8 million raised in July, according to recent data from PitchBook.

However, this apparent improvement in August is mainly due to two significant funding rounds. These include the $400 million round secured by the “Shariah-compliant” digital asset exchange Haqqex and the $100 million round raised by crypto custodian BitGo. Without these two rounds, the overall investment in the sector would have actually shown a decline compared to July.

## Year-on-Year Decline in Funding

When comparing the funding raised last month to the same period last year, there is a notable decline. In August of the previous year, crypto and blockchain startups had managed to raise an impressive $1.74 billion, indicating a significant 53% decrease in funding. This downward trend has been persistent, as venture capital investors have lost enthusiasm for the digital asset industry since around early 2022. Investments in the sector have consistently dropped for five consecutive quarters, leading to current concerns.

## Uncertain Path Ahead

While August’s funding numbers may temporarily alleviate worries, the situation remains uncertain. In the third quarter alone, web3 startups have managed to raise $1.38 billion. However, in order to surpass the funding levels seen in the second quarter, these startups would need to secure an additional $960 million in September. Considering the recent trends, achieving this target seems highly unlikely.

## How AI legalese decoder Can Help

In these challenging times, AI legalese decoder can provide valuable assistance to crypto and blockchain startups. This powerful tool utilizes artificial intelligence to decode complex legal language and regulations related to the digital asset industry. By automating the interpretation of legal documents, contracts, and regulatory requirements, AI legalese decoder can save valuable time and resources for startups. Its ability to provide clear and understandable explanations of legal jargon can help entrepreneurs navigate the legal landscape more efficiently, ensuring compliance and reducing legal risks. Ultimately, AI legalese decoder enables startups to focus on their core business operations while maintaining regulatory compliance in a rapidly evolving legal environment.

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