Startups in the crypto space secured a total of $2.7 billion across 503 deals, according to the Q2 2024 PitchBook report.
This represents a 2.5% increase in invested capital compared to Q1 2024, but there’s been a 12.5% drop in deal volume.
REPORT | Crypto Fundraising Rose Over 40% in Q1 2024, Says PitchBook
Infrastructure startups led the way in funding during the quarter, with the largest rounds raised by #EigenLayer and #Zama.https://t.co/cCIct3H1hA @PitchBook pic.twitter.com/mkPSlG6EjV
— BitKE (@BitcoinKE) May 22, 2024
According to the report, there is a growing trend toward larger deal sizes, as investors continue to show confidence in the crypto market despite ongoing regulatory challenges and market volatility.
“The increasing deal value yet lower deal count suggests that deal sizes increased overall during the quarter,” said the report.
“With positive investor sentiment returning to crypto and barring any major market downturns, we expect the volume and pace of investments to continue increasing throughout the year,” the report adds, hinting at a potentially strong second half of 2024.
Infrastructure startups led the way in securing funding with the largest rounds going to:
- Monad, a parallelization Layer 1 platform, which raised $225 million in a Series A round
- DeFi-specific L1 BeraChain, which raised $100 million in Series B; and
- Bitcoin restaking platform, Babylon, which raised $70 million in an early-stage round
Blockchain-based social media platform, FarCaster, also raised $150 million in a Series A round, marking a $1 billion post-money valuation.
INTRODUCING | A Look at FarCaster, the Rising Decentralized Crypto Social Network
Farcaster unveiled ‘Frames’ on January 26 2024, introducing interactive mini applications for both individuals and developers. Almost two weeks after the launch of Frames, Farcaster experienced a… pic.twitter.com/CEFL5vvqMI
— BitKE (@BitcoinKE) April 28, 2024
On the broader venture market, the report shows that while valuations were up for seed and early-stage investments, they were down for late-stage rounds.
The median pre-money valuation for seed-stage companies rose by 97% from full-year 2023 to $23 million, and early-stage valuations surged by 166% to $63.8 million.
On the other hand, late-stage valuations declined by 36.0% to $40.8 million, reflecting a more cautious approach by investors at later stages of company growth.
Meanwhile, a recent analysis by Techcrunch found that the blockchain sector has been responsible for 4 of the 38 unicorns that have been minted so far in 2024.
GM. We are thrilled to be recognized as one of the 4 crypto unicorns in 2024 by @BitcoinKE! 🚀
We’re excited to be in great company with @monad_xyz, @farcaster_xyz, and @eigenlayer
Check out the full article here:https://t.co/H8Z8ixqHRc
— Humanity Protocol 🖐️ (@Humanityprot) August 14, 2024
The 4 include:
- Monad Labs
- Eigen Layer
- FarCaster, and
- Humanity Protocol
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