Crypto startups venture capital funding volume exceeded $1 billion for the second month in a row

Previously, a similar situation was observed in the crypto market in October-November 2022

06.05.2024 - 11:15

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3 min

What’s new? The volume of venture capital funding is returning to the levels of two years ago. Thus, by the end of April, the figure exceeded $1 billion, in March this mark was also overcome. Previously, two months in a row, crypto startups raised more than a billion in October and November 2022.

RootDat’s data

What else is known? According to RootData, 161 investment rounds raised $1,02 billion in April. The figure dropped slightly compared to March: back then, startups raised $1,09 billion in 186 rounds.

Some of the largest investments were the $255 million raised by the team of the Layer 1 (L1) blockchain Monad with participation from Paradigm and Coinbase Ventures, as well as a $47 million round led by BlackRock for asset tokenization platform Securitize.

Venture capital funding volume for crypto projects rose by 53% in a month

In March, 180 projects raised $1,16 billion

Overall, the industry has raised more than $3,67 billion in venture capital in 604 funding rounds since the beginning of the year, compared to $9,3 billion for 2023.

Blockchain infrastructure companies accounted for the largest portion of investments this year ($1,7 billion), with decentralized financial protocols coming in second ($626 million). Decentralized Autonomous Organizations (DAOs) are the outsiders, they managed to attract only $3 million.

In addition, in late April it became known that the leading digital asset management company Pantera Capital intends to raise $1 billion to launch a new crypto fund. It will invest in early-stage startups and liquid tokens. If successful, the launch will be the largest since May 2022, when venture fund Andreessen Horowitz (a16z) raised $4,5 billion with a similar goal.

Media: a16z venture fund bought $90 million worth of Optimism governance tokens

As part of the deal, OP coins will be blocked for sale for two years

Earlier, Galaxy Research analysts also reported that venture capitalists invested $2.49 billion in 603 funding rounds for crypto startups in Q1 2024. The quarter-on-quarter growth in terms of funding volume and number of deals was 29% and 68% respectively. The company predicts that the sustained recovery should be confirmed by subsequent quarters of growth.

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