Crypto startups in the second quarter of the year raised $2.7 billion in funding from Venture capital firms.
This is slightly higher than what was raised in the first quarter of the year although the number of deals completed declined in Q2.
The above data was revealed in an August 9 report by Pitchbook which gave comprehensive detail of the Crypto landscape and its venture capital ecosystem in Q2 2024.
According to the report, In Q2 2024, crypto fundraising increased slightly as startups secured $2.7 billion across 503 deals. This represented a 2.5% increase in invested capital but a 12.5% decline in deal volume compared with the previous quarter.
Pitchbook explained that the increase in deal value despite the drop in number of deals suggested that deal sizes increased overall during the quarter.
They also commented on the current investor sentiment in the market and how it forecast the trajectory investors will tow in the next quarter.
“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 commented.
The pitchbook report revealed that infrastructure led the way in Q2 2024, with the largest rounds raised by parallelization Layer 1 platform Monad ($225.0 million Series A), DeFi-specific Layer 1 platform Berachain ($100.0 million Series B), and bitcoin restaking platform Babylon ($70.0 million early-stage round).
The report also highlighted another two mega rounds with over a $100 million raised in each round.
“The other two mega-rounds of the quarter went to Farcaster, which raised a $150.0 million Series A round at a $1.0 billion post money valuation, and to blockchain-based gaming platform Zentry, which raised a $140.0 million early-stage round” Pitchbook added
Funding for crypto startups have significantly slowed down compared to its 2021 and 2022 levels. In 2021 crypto startups pulled in $25.3 billion in funding while in 2022 it pulled in $29.4 billion.
In 2023, Total investment raised by crypto startups hit $10.1 billion while the figure in 2024 is currently at $5.4 billion after two quarters.
What to Know
- Some of the lead investors in Key crypto pre-seed/seed deals in Q2 2024 include Dragonfly Capital, Founder’s fund and Signum growth capital while lead investors in Key crypto early-stage VC deals in Q2 2024 include Paradigm, Bullish capital and Polychain capital.
- Fundraising in 2024 compared to 2023 Compared revealed that valuations were up for the seed stage and the early stage yet were down for the late-stage funding.
