DeFi Lending Retains VC Backing Despite a Heavy Drop in Crypto FundingAuthor: Ali RazaLast Updated: 03 August 2020 There has been a sharp drop in VC funding across the crypto sector recently. However, that has not deterred DeFi lensing companies to gain more than 50% in fundraising last month.Ana. Vc, a venture capital firm, published a report recently which shows that there has been a 57% reduction in crypto funding from VCs for the past month.However, in spite of the shortfall in overall investments, the decentralized lending sector still raised about 150% funding of its March total, which indicates a flourishing period.Crypto funding fell in AprilThe reports did not include the funding by Bakkt but identified 32 disclosed deals with a total valuation of about $50 million. Compared with the valuation reported the previous month at $117million, the latest valuation is a sharp drop from the previous amount.According to the report, “Crypto winter isn’t over and is not entirely immune to macroeconomic trends as the majority of the deals are done in equity.,” DeFi keeps dominatingThe report revealed that DeFi (Decentralized finance and fintech) are still dominating the overall fundraising sector by a wide margin, despite the poor performance in the sector. The report revealed for the second month in a row that DeFi has garnered more than 40% of the monthly fundraising total in the crypto sector.Companies building blockchain infrastructure came second with 12.9%, while enterprise followed with 9.7%. On the other hand, the marketplace represented a 6.4% stake in the funding table.DeFi recorded a sharp drop in equity dealsDeFi remained steadfast in its fundraising activity for April, despite the heavy poor performance within the crypto sector. Many other sectors saw a sharp drop in fundraising, with heavy losses. However, DeFi grew from $3.1 million in March to $4.84million in April, which represented a 56% increase in raised capital.However, despite the increased total funding raised the past month across the DeFi sector, the gains in equity deals fell to $19.35 million from its previous value of $46.21 million.However, the most affected sector is DeFi payment companies as the value fell to $1.61 million in April from the previous value of $12.34 million in March, representing an 82% drop.Nonetheless, exchanges were the biggest sufferers of a drop in fundraising, as they fell to $3.23 million from a previous high of $12.34 million in March, representing a drop of 73.8%.No fundraising from any gaming platformFrom the entire fundraising by DeFi, almost 50% of them were recorded in the United States, with more than 80% closing in Europe, U.K, and the U.S.The report also revealed no gaming firm was able to close a fundraising deal in April. This is coming despite the strong publicity crypto media has given blockchain-based gaming platforms during this lockdown period.