As a testament to the increasing confidence in cryptocurrency projects, funding for the ecosystem now stands at $3.67 billion across 604 funding rounds thus far in 2024.
Crypto venture capital (VC) funding has sustained positive momentum, surging past the $1 billion mark for the second consistent month. According to data from RootData, the crypto ecosystem saw a significant inflow of $1.02 billion across 161 funding rounds in April 2024, a little lower than the previous month’s $1.09 billion spread across 186 investment rounds.
Similarly, data from DeFiLlama indicates a comparable trend, with April 2024 VC funding inflows totalling $935 million, just shy of the billion-dollar mark. Notably, the distribution of fundraising sizes reveals that 40.53% of funding falls within the $1 to $3 million range, while only 2.16% exceeds $50 million, indicating a lower concentration of large investments in select projects. Seed fundraising dominates the cryptocurrency funding landscape, accounting for 51% of overall fundraising rounds.
The crypto community has responded positively to these significant growth trends in the crypto VC sector. Token VC, a prominent venture capitalist and crypto investor, noted that 2024 is proving to be a founder’s market, with over $2.49 billion invested in more than 600 deals. He noted that the majority of funding rounds occur at the earliest stage, where valuations have shown a recovery from the lows of the first quarter of 2023.
Moreover, TokenVC emphasized that venture firms are actively seeking firms operating in key verticals such as infrastructure, DAOs, NFTs, Trading, Layer2/Modular, and ZK. Additionally, he pointed out overlooked sectors like Liquidity, Data, Real World Assets (RWA), DePIN, and tokenization.
This trend of increased investor activity in the crypto sector is consistent with recent reports. Crunchbase’s latest findings revealed that startups in the sector raised an astonishing $1.9 billion from 346 funding rounds in Q1 2024, marking a remarkable 58% growth compared to Q4 2023.
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