Crypto Funding Frenzy: VCs Poured $2.4B into Startups Last Quarter

In the initial three months of 2024, venture capitalists showed immense interest in investing in cryptocurrency startups, contributing a total of $2.4 billion in 518 deals. This signifies an impressive 40.3% increase in funding from the previous quarter, driven by a new wave of optimism and a bull market pushing up cryptocurrency prices.

Statistic shows that deal volume increased by 44.7% compared to Q4 2023, with investment reaching over $1 billion for March ($1.09B) and April ($1.02B)

The surge in crypto funding was mainly caused by the SEC’s endorsement of Bitcoin ETFs and the subsequent increase in new institutional investments in the sector. Venture capitalists are optimistic that the bullish market will maintain its upward trend in 2024.

Key deals in the crypto space include Zama securing $73 million for crypto encryption in a Series A round, EigenLayer’s $100 million Series B for an Ethereum restaking platform, and Together AI raising $106 million in an early-stage round for its decentralized cloud platform.

With the rise of bullish market sentiment following the end of the crypto winter, venture capitalists are rushing to support what they see as the potential future leaders of the blockchain industry. Get ready for a year of unprecedented VC funding in the cryptocurrency sector.