TLDR:
- Venture capital funding into cryptocurrency projects surged in the first quarter of 2024
- A total of 518 deals with a combined deal value of $2.4 billion was closed in the quarter
Venture capital funding into cryptocurrency projects saw a significant increase in the first quarter of 2024, driven by rising bitcoin prices, favorable regulatory developments, and the approval of spot-bitcoin exchange-traded funds in the US. According to data from Pitchbook, a total of 518 deals were closed in the quarter, with a combined deal value of $2.4 billion. This represented a 40.3% increase in invested capital and a 44.7% increase in deal volume from the previous quarter. Median valuations for different stages of deals also showed significant increases compared to 2023 averages.
Early-stage deals in the period included significant investments in companies like Together AI, EigenLayer, Freechat, and Figure Markets. Seed and pre-seed deals were also notable, with investments in companies like Zero Gravity, Avail, Ethena, and Elixir Games. Pitchbook noted that investment rounds in the crypto sector have become highly competitive, especially at the early stages, with early-stage deals earning higher valuations compared to late-stage deals. The trend is expected to continue throughout the year, barring any major market downturns.
