In the second quarter of 2024, 503 deals brought in $2.7 billion in funding for crypto startups. This was a slight rise in capital raised despite a clear drop in deals.
A report from PitchBook says that overall investment increased 2.5% compared to the previous quarter, even though there were 12.5% fewer deals.
Even though there were fewer deals, the study said each one was worth more.
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What Factors Are Influencing Crypto Investment Growth?
According to analysts at PitchBook, the number and speed of investments will likely rise throughout the rest of the year as investors’ views on crypto continue to improve and as long as there are no significant market disruptions.
This optimistic view shows that investors are cautiously but optimistically regaining faith in crypto.
During Q2, infrastructure companies raised the most money. Monad, a parallelisation Layer 1 platform, got $225 million in Series A funding, which was a big round.
After that, another $100 million Series B round was raised for the DeFi-specific Layer 1 platform Berachain. Finally, an early-stage round of $70 million was raised for the Bitcoin staking platform Babylon.
These significant expenditures highlight how crucial infrastructure development is to the cryptocurrency sector.
Two other important funding rounds were a $150 million Series A round for Farcaster, a platform that was worth $1 billion after the money was raised, and a $140 million early-stage round for Zentry, a blockchain-based game platform.
The study also showed that seed and early-stage investments are worth more than in 2023. At the seed stage, the median pre-money valuation reached $23 million; at the early stage, it reached $63.8 million.
However, values in the late stages decreased, with $40.8 million being the median number.
The change in pricing trends shows that early-stage investments are very competitive, but late-stage deals are less competitive.
Crypto Startups Funding Surpasses $100 Billion
Crypto startups have gotten a lot more money over the past ten years. Since May 2014, they’ve raised more than $100 billion, a fantastic amount of money.
Over $7 billion was raised for coin startups in October 2021, making that month the busiest month for crowdfunding.
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In February 2022, $3.67 billion was given as the second-most money ever recorded.
A recent study shows that investors in the United States provide almost half of all cryptocurrency funding.
Data from the second quarter of 2023 show that the leftover investments are split between several countries. The UK has 7.7%, and Singapore has 5.7%.
There were several well-known funding deals between the end of 2023 and the beginning of 2024.
All at once. AI company Wormhole and cross-chain protocol Wormhole each received $225 million in funding. Open-source cloud storage companies Totter and Eigenlayer each received $101 million and $100 million, respectively.
Other noteworthy fundraising rounds include the $165 million raised by Swan Bitcoin and the $110 million raised by Blockchain.com.
In light of these considerable investments, it is clear that the bitcoin business continues to inspire confidence and enthusiasm.