Venture Capital Boosts Crypto Startups in Q2

In Q2 2024, crypto startups saw a slight rise in venture capital funding, despite fewer deals, according to Pitchbook.

The total investment increased by 2.5%, while the number of deals fell by 12.5% compared to the previous quarter.

Key funding highlights include Monad, which raised $225 million for its layer-1 platform; BeraChain, securing $100 million for its DeFi protocol; and Babylon, obtaining $70 million for Bitcoin restaking. Notable rounds also featured Farcaster, which raised $150 million, and Zentry, with $140 million.

Although funding is up slightly from Q1, it’s significantly lower than the $25.3 billion and $29.4 billion raised in 2021 and 2022. Total crypto investment in 2023 stands at $10.1 billion, with projections pointing to $10.8 billion by year-end.

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The competitive nature of early-stage funding has intensified, while later-stage investments are less competitive. Since 2014, the blockchain sector has attracted over $102 billion across 5,400 funding rounds.

This update comes after Pantera Capital and Paradigm’s attempts to raise significant funds for new crypto ventures, with Pantera aiming for $1 billion and Paradigm seeking $850 million.

Alexander Stefanov