Crypto VC to soar in Q1 2024 with $2.49 billion invested

Cryptocurrency and blockchain projects have seen a resurgence in venture capital investment after three consecutive quarters of decline. In the first quarter of 2024, fundraising activity continued to grow, raising $2.49 billion through 603 deals. This represented a 29% increase in funding and a 68% increase in the number of transactions, as reported by Galaxy Research.

The increase in investments over a given time frame corresponds with the rise of the Bitcoin ETF and Bitcoin layer 2 solution upgrades and recaptures. However, this improvement is still lower than the level at which Bitcoin crossed $60,000. At the time of writing, Bitcoin price stood at $63,009.53, indicating a trading volume of 4.06% over the past 24 hours.

Source: Coinmarketcap BTC/USD

Nearly 80% of investments were focused on early-stage startups, reflecting a cautious approach by funds towards high-risk, late-stage companies. These later companies saw minimal investment from large generalist venture capital funds. The infrastructure segment received the largest share of the sector’s investments at 24%, boosted by large rounds such as EigenLayers $100 million.

The United States remains unbeatable in crypto venture capital flows, closing 37.3% of total venture capital deals.

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