TLDR:
Key Points:
- Venture capital funding into cryptocurrency projects increased in Q1 2024 due to bitcoin price recovery and regulatory progress.
- A total of 518 deals worth $2.4 billion were closed in the quarter, with significant increases in deal volume and invested capital.
In the first quarter of 2024, venture capital funding for cryptocurrency projects experienced a surge, driven by the rebound in bitcoin prices, positive regulatory advancements, and the approval of semi-bitcoin exchange-traded funds in the US. Pitchbook data shows that a total of 518 deals valued at $2.4 billion were completed during the quarter, representing a 40.3% increase in invested capital and a 44.7% increase in deal volume compared to the previous quarter. Median valuations for different deal stages were notably higher than the 2023 average, with early-stage valuations increasing significantly. The enhanced investor sentiment towards cryptocurrency is expected to lead to a continued rise in investment activity throughout the year.
Key Deals:
- $106 million invested in decentralised cloud platform Together AI by Salesforce Ventures.
- $80 million invested in social content platform Freechat by an undisclosed source.
- $35 million invested in Layer-1 network Zero Gravity by Hack VC.
These investments highlight the growing interest and confidence in the cryptocurrency sector, with key players securing substantial funding for innovative projects. The increasing competition in early-stage deals and the higher valuations reflect the potential of the cryptocurrency market and the opportunities it presents for investors and innovators alike.
