TLDR:
Key Points:
- Crypto venture capital funding reached $2.4 billion in Q1 of 2024
- The approval of the first US bitcoin spot ETF contributed to the rise in investment
In the first three months of 2024, crypto startup funding surged to $2.4 billion, marking a 40.3% increase from the previous quarter. This rise was driven by the debut of the first US bitcoin spot ETF and expectations of lower interest rates, sparking investor interest in digital currencies. The funding was distributed across 518 deals, with a focus on infrastructure for crypto and blockchain technology startups. The largest deal was a $106 million investment in a decentralised cloud platform, Together AI. Despite the strong funding numbers, exits remained low, indicating a further maturation of the market is needed. With the expected increase in mergers later in the year, particularly among crypto exchanges and infrastructure providers, the market is poised for continued growth and evolution.
