TLDR: Crypto Venture Capital Funding Surpasses $1 Billion for Second Consecutive Month
- Over $1 billion invested in crypto companies for 2nd month in a row in April 2024, exceeding 2023’s trend.
- Blockchain infra and DeFi attracted the most VC funding in 2024 so far, with DeFi following closely behind infrastructure.
Entering the world of cryptocurrency proves to be a profitable venture, as per reports from RootData revealing that Crypto Venture Capital Fundraising has once again surpassed the $1 billion mark for the second month in a row. In April, a total of $1.02 billion flowed into the industry across 161 investment rounds, closely following March’s impressive $1.09 billion spread across 186 rounds. This marks the first time since October and November of 2022 that the crypto sector has achieved over $1 billion in venture capital for two consecutive months, showcasing remarkable resilience.
April witnessed several noteworthy fundraisings that propelled the industry past the billion-dollar milestone, including investments from major players like BlackRock and Monad. Leading the charge in fueling the exponential growth of venture capital funding are blockchain infrastructure firms, amassing a colossal $1.7 billion in 2024 so far. Decentralized finance protocols secured the second position for contributing to venture capitalist funds, raising $626 million. However, Decentralized Autonomous Organizations (DAO) have struggled, securing only $3 million in funding crypto so far in 2024.
This major boom in crypto venture capital fundraising coincides with the hopes and ambitions of major VC firms like Pantera Capital and Paradigm, who have reportedly been seeking substantial fundraising for new cryptocurrency projects. The first quarter of 2024 witnessed a notable surge in VC funding for the crypto space, accruing $3.67 billion to date. Analysts project that crypto funds could potentially swell to $500 billion to $650 billion in VC funding within the next five years, underscoring the immense growth potential of the crypto market.
Since 2014, crypto venture capital funding has witnessed a meteoric rise, surging past the $100 billion mark across 5,195 funding rounds. With 2024 already surpassing the milestone of $3.67 billion across 604 funding rounds, the crypto industry is poised to eclipse the $9.3 billion funding achieved in 2023, marking yet another milestone in its evolutionary journey.
