TLDR:
- VC interest in crypto firms increased in Q1 2024
- Major firms like Galaxy Digital and Paradigm are raising funds for new ventures
2024 has seen a strong recovery for cryptocurrencies, with VC firms investing $2 billion into digital asset companies in Q1. This marks the second successive quarter of increase since bottoming out at $1 billion in Q3 2023. The number of investments also surged by around 50%, indicating renewed faith in the digital asset sector.
Reports suggest that firms like Galaxy Digital and Paradigm are wasting no time deploying fresh capital, with Galaxy Digital setting up a $100 million Galaxy Ventures Fund and Paradigm in talks to raise between $750 million and $850 million for its latest fund. Ethereum remains the most popular chain for VC investments in Q1, followed by Solana and Arbitrum.
The resurgence of VC interest and capital in the crypto space is a pivotal development that could catalyze this bull cycle, allowing promising projects to go mainstream and onboard new users more effectively.
