TLDR:
- Crypto startup funding reached $2.7 billion in Q2, despite a decrease in total deals.
- Infrastructure projects, such as Monad and BeraChain, led the way in funding.
A recent report from Pitchbook revealed that crypto startups raised slightly more from venture capital funding in the second quarter of the year compared to the first, reaching a total of $2.7 billion. This increase in funding came despite a 12.5% decline in the number of deals. The report suggests that there is renewed investor interest in the crypto market, especially from institutional investors.
Infrastructure projects were the main recipients of funding in Q2, with projects like Monad raising $225 million in a Series A round, BeraChain raising $100 million, and Babylon raising $70 million. Additionally, two “mega-rounds” were noted, with Farcaster raising $150 million at a $1 billion post-money valuation and Zentry raising $140 million in an early-stage round.
While funding for crypto startups has slowed in the past 18 months compared to the previous years, the report indicates that total investment for crypto firms in 2023 reached $10.1 billion, with estimates suggesting that 2024 could bring in $10.8 billion at current rates. The report also highlights that the competition for funding has increased at earlier stages but lessened at later stages.
Since 2014, over $102 billion has been raised by crypto projects across more than 5,400 funding rounds, according to data from DefiLamma. The report comes on the heels of Pantera Capital and Paradigm seeking to raise significant funds for new crypto ventures, with Pantera aiming for $1 billion and Paradigm seeking $850 million.
Overall, despite a decline in total deals, crypto startup funding remains robust, with infrastructure projects leading the way in securing venture capital investment in Q2.
