TLDR:
- Venture capital investment in crypto companies rose to $2.4 billion in the first three months of 2024
- Crypto venture capital flows peaked at $11.1 billion in the first quarter of 2022
Global venture capital investment in crypto companies rose to $2.4 billion in the first quarter of 2024, marking a sign of renewed investor interest. This increase comes after seven consecutive quarters of declining volumes, with just $1.7 billion invested in the last quarter of 2023, according to data from PitchBook. The industry, as described by PitchBook senior analyst Robert Le, is still in its early stages with potential for growth and innovation. Despite some setbacks in 2022, including bankruptcies at major crypto firms, recent developments, such as U.S. regulators approving exchange-traded funds tracking bitcoin’s spot price, have boosted investor confidence. The price of Bitcoin has also seen a recovery, hitting a new all-time high in March. Le anticipates that, with a positive market outlook, venture capital investments in the crypto sector will continue to increase throughout the year.
