Crypto VC funding breaks 2-year slump in Q1 2024
Venture capital (VC) funding flowing into the crypto space showed a positive trend in the first quarter of 2024, breaking a two-year slump.
Data analytics platform CryptoCoryo has released a report on X, highlighting the increase in total invested funds and the number of projects that received VC funding since Q4 2023.
The platform saw a 38% increase in investment during the quarter.
In addition, the number of projects that received funding increased by 49 percent. The number of projects receiving funding from Q4 2021 has not been shown.
This means that crypto VC funding is entering an upward direction.
Crypto Koryo believes this could be the “beginning of a new wave”. According to the analytics platform, the latest development shows similar patterns to the fourth quarter of 2020, before the influx of VC investments into the space.
CryptoCoryo also highlighted that unlike previous quarters, where banks and non-crypto VCs led the investments, this quarter saw more interest from crypto-focused venture firms.
Crypto-native VCs such as Andreessen Horowitz Crypto, OKX Ventures, Multicoin Capital, Paradigm and Polychain dominate the invested funds during the quarter.
In March alone, crypto VC funds invested more than $1.1 billion in 180 investments. VC funds in crypto jumped 52.5% month-on-month in March, with investments flowing into infrastructure and decentralized finance projects.
Related: Venture capital exec says ‘lack of creativity' is driving funding away from crypto
Funding in Q1 2024 will follow a higher pace than Q4 2023.
Crypto VC investments in Q1 2023 increased by 2.5% compared to Q3 2023. This marks the first VC investments in crypto projects since March 2022.
Crypto has had a rough year in 2022, with declining venture capital funds flowing into the sector coupled with gloomy market conditions. The year saw a series of quarterly declines in capital investments.
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