Crypto Venture Capital Funding Surpasses $1 Billion for Second Consecutive Month: A Deeper Look

The post Crypto Venture Capital Funding Surpasses $1 Billion for Second Consecutive Month: A Deeper Look appeared first on Coinpedia Fintech News

According to reports from RootData, Crypto Venture Capital Fundraising has exceeded $1 billion for the second month. The last month of April saw $1.02 billion in inflows into the industry across 161 investment rounds, after March’s impressive $1.09 billion across 186 rounds.

This consistency in funding represents the first time since October-November 2022 that the crypto sector has achieved over $1 billion in venture capital in two consecutive months.

Key Fundraisings in April

Ever since 2022’s October-November, this is the first time the crypto industry has hit over $1 billion in venture capital for 2 consecutive months. We can’t let go unnoticed the several high-profile fundraisings that in April contributed to this billion-dollar milestone. 

A major deal that made headlines was that one of the world’s largest asset managers and leading Bitcoin ETF issuers, BlackRock, invested $47 million in Securitize. This company specializes in real-world asset tokenization. 

Another major deal that caught everyone’s attention was the $225 million raised by the new Layer-1 blockchain, Monad, often called a “Solana killer.” Heavyweights like Paradigm and Coinbase Ventures backed Monad’s investment. 

Another noteworthy investment in April was the $80 million deal between Auradine, a blockchain infrastructure startup, and a substantial $100 million for Berachain, another mentionable Layer-1 blockchain built on Cosmos.

Who Secured 1st, 2nd, and 3rd?

While blockchain infrastructure firms topped the list for contributing to the enormous growth of venture capital funding, attracting an enormous $1.7 billion in 2024 so far, DeFi followed up closely as well. 

Decentralized finance protocols secured the second position for contributing to venture crypto capitalist funds, raising an appreciable $626 million. 

However, DAO aka Decentralized Autonomous Organizations most likely appear to be struggling as this sector has been able to secure only $3 million in funding crypto so far in 2024. 

VC Funding in the First Quarter of 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. Pantera Capital’s aim of securing a $1 billion fund raise, if successful, will make it the largest in the industry since May 2022 when a16z raised a record $4.5 billion.

Remarkably, despite bringing in $7.2 billion for ventures in different fields including AI and gaming, a16z decided to leave its crypto-focused fund. 

The first quarter of 2024 has broken the two-year downtrend of VC funding in the crypto space, experiencing a notable surge and securing $3.67 billion in 2024 to date. When compared to Q4, 2023, the total of the amount invested and the number of projects receiving funds, saw significant increases than the past year. 

Breaking it down, data suggests that a 38% rise compared to 2023, was experienced in funds invested during the quarter. Additionally, there was a 49% increase in the number of projects securing funding, reaching levels not seen since Q4 2021. 

Just under $1.9 billion was secured by Web3 startups in funding across 346 deals in the first quarter, which is still a remarkable 58% increase from the previous quarter. 

Crypto funds can potentially hit $500 billion to $650 billion in VC funding within the next five years, reports from analysts at Bernstein Research suggest, which is a considerable leap from the current valuation of approximately $50 billion.

All in all…

Since 2014, the crypto venture capital funding has witnessed an enormous $100 billion, funding across 5,195  funding rounds. This year, the crypto industry is expected to surpass 2023’s $9.3 billion funding milestone, as it has already secured over $3.67 billion across 604 funding rounds in 2024 so far.