back

Crypto Startup Funding Growing to $2.7B in Q2 Despite Decline in Total Deals

Aug. 12, 2024. 1 min. read. 6 Interactions

Venture capital funding for crypto startups reached $2.7 billion in Q2 2024, up 2.5% from Q1, despite a 12.5% drop in deal numbers, signaling growing investor confidence.

Crypto startups secured $2.7 billion in venture capital funding during the second quarter of 2024, marking a slight increase from the first quarter, despite a notable drop in the total number of deals, according to a report from Pitchbook on August 9.

The report highlighted a 2.5% rise in total invested capital compared to Q1, even as the number of deals fell by 12.5%. This trend suggests growing confidence from institutional investors in the crypto market. “With positive investor sentiment returning to crypto and barring any major market downturns, we expect the volume and pace of investments to continue increasing throughout the year,” Pitchbook noted.

Infrastructure projects were the primary beneficiaries of this funding surge. Among the top recipients, Monad, a layer-1 platform, raised $225 million in a Series A round. DeFi protocol BeraChain, which introduced a new proof-of-liquidity model, secured $100 million in a Series B round, while Bitcoin restaking platform Babylon raised $70 million in an early-stage round.

Pitchbook also highlighted two significant “mega-rounds” during Q2: decentralized social media protocol Farcaster raised $150 million in a Series A round at a $1 billion valuation, and blockchain gaming platform Zentry secured $140 million in an early-stage round.

However, the report acknowledged that overall funding for crypto startups has slowed compared to the peak years of 2021 and 2022, which saw $25.3 billion and $29.4 billion raised, respectively. For 2023, total investment reached $10.1 billion, with projections for 2024 suggesting a total of $10.8 billion if current trends continue.

The competitive landscape for crypto startup funding has shifted, becoming increasingly competitive at early-stage fundraising but less so in later stages. Since June 2014, more than $102 billion has been raised across 5,400 funding rounds in the blockchain industry, according to DefiLlama.

Source: Crypto Startup Funding Growing to $2.7B in Q2 Despite Decline in Total Deals

About the Writer

Knits By Racoon

21.55503 MPXR

Turkey's crypto sector is booming, with 47 firms, including Bitfinex and Binance TR, applying for licenses under new regulations. However, Coinbase and other major platforms haven't applied yet.

Comment on this article

0 Comments

0 thoughts on “Crypto Startup Funding Growing to $2.7B in Q2 Despite Decline in Total Deals

Related Articles

3

Like

Dislike

Share

Comments
Reactions
💯 💘 😍 🎉 👏
🟨 😴 😡 🤮 💩

Here is where you pick your favorite article of the month. An article that collected the highest number of picks is dubbed "People's Choice". Our editors have their pick, and so do you. Read some of our other articles before you decide and click this button; you can only select one article every month.

People's Choice
Bookmarks