TLDR:
- Venture capital investments in the crypto sector reached $3.19 billion in the second quarter of 2024.
- The total number of transactions rose from 682 to 739, with an increase in median size and pre-money valuations.
Despite a bearish market, the crypto sector saw a modest increase in venture capital investments, reaching $3.19 billion in the second quarter of 2024. This indicates a continuous growth trend, with the total number of transactions rising to 739 from 682 in the first quarter. The median size of transactions increased to $3.2 million, and pre-money valuations jumped to $37 million, approaching historical highs.
While generalist VCs are showing a retreat, crypto-focused venture capitalists are facing increased competition, potentially giving founders more negotiation leverage. Although the United States remains dominant in transactions and invested capital, regulatory challenges may push companies to seek financing and operations abroad. If the current pace continues, 2024 is set to record the third highest level of investment capital and transactions, behind only the peak years of 2021 and 2022. Allocators may be gearing up to re-enter the crypto market, leading to increased venture capital activity in the second half of the year.
