Key Takeaways:
- Crypto startups raised $2.7 billion in Q2 2024, with infrastructure projects leading at $685 million.
- Venture capital funding slowed compared to 2021-2022 highs, with $10.1 billion invested in 2023 so far.
- Major funding rounds included $150M for Farcaster and $140M for Zentry, highlighting growth in social media and gaming sectors.
YEREVAN (CoinChapter.com) — Crypto startups secured $2.7 billion in venture capital funding in Q2 2024, marking a 2.5% increase from the first quarter, according to Pitchbook. However, the total number of deals dropped by 12.5%. This shift suggests that while fewer deals were made, the ones that happened involved larger sums of money.
Pitchbook noted that investor sentiment toward crypto is improving. The data indicates that the focus was on projects that received significant funding.
Crypto Infrastructure Leads Q2 with $685M; Social Media and Gaming Gain Ground
Infrastructure projects received the most attention in Q2. Monad, a layer-1 platform, raised $225 million in a Series A funding round. BeraChain, a DeFi protocol with a proof-of-liquidity model, secured $100 million in a Series B round. Additionally, Babylon, a Bitcoin restaking platform, raised $70 million in early-stage funding. Together, these projects attracted $685 million, showing the importance of infrastructure in the crypto industry.
Two large funding rounds were notable in Q2. Farcaster, a decentralized social media protocol, raised $150 million in a Series A round, reaching a $1 billion valuation. Meanwhile, Zentry, a blockchain gaming platform, secured $140 million in early-stage funding. These rounds highlight growing interest in social media and gaming within the blockchain space.
Crypto Venture Funding Slows in 2023 After Record Highs in 2021-2022
While Q2 saw strong performance, overall venture capital funding in crypto has slowed compared to the peaks of 2021 and 2022, which saw $25.3 billion and $29.4 billion raised, respectively. In 2023, total investment reached $10.1 billion, with projections suggesting $10.8 billion by the end of the year. Early-stage funding has become more competitive, while later-stage rounds have seen less activity.
Blockchain Investments Top $102B; New Funds Aim to Raise $1.85B
Since June 2014, over $102 billion has been invested in the blockchain industry across 5,400 funding rounds, according to DefiLlama. Pantera Capital and Paradigm are currently raising new funds, with Pantera aiming for $1 billion and Paradigm targeting $850 million. Above all, these efforts continue to bring new capital into the crypto market.
