TLDR:
- Crypto startup funding reached $2.4 billion in Q1 2024, showing growth for the second consecutive quarter.
- US regulatory approval of spot bitcoin ETFs contributed to a record high for bitcoin at $73,803 in March 2024.
Crypto startup funding surged to $2.4 billion in the first quarter of 2024, making it the second consecutive quarter of growth, according to PitchBook. This increase in funding comes at a time when global venture capital investments hit a near five-year low, highlighting the resilience of the crypto sector. The upsurge in funding was largely driven by the US regulatory approval of spot bitcoin ETFs from BlackRock and Fidelity, which played a key role in legitimizing digital assets and pushing bitcoin to a record high of $73,803 in March 2024.
Notably, startups in the crypto and blockchain infrastructure sectors attracted the largest share of the funding, with early-stage rounds like Together AI’s $106 million funding round led by Salesforce Ventures indicating the sector’s growing confidence and competition. This trend is also reflected in higher valuations for early-stage deals compared to late-stage investments, signaling a positive outlook for the future of the industry.
The surge in crypto startup funding suggests a renewed investor confidence in digital assets, driven by the recovery of publicly traded tokens and increased institutional adoption. This renewed confidence hints at a potential phase of stability and growth for the crypto industry, making it an attractive option for investors seeking portfolio diversification. As the market matures, analysts predict a rise in mergers within the crypto sector, particularly among exchanges, custodians, and infrastructure providers, leading to a more integrated and efficient market structure.
