Key Points:
- In Q2 2024, crypto startups secured $2.7 billion, with infrastructure projects leading the way at $685 million.
- Venture capital investment has decelerated from the peaks of 2021-2022, totaling $10.1 billion so far in 2023.
- Notable funding rounds included $150M for Farcaster and $140M for Zentry, emphasizing growth in the social media and gaming sectors.
In Q2 2024, crypto startups secured an impressive $2.7 billion in venture capital funding, a 2.5% rise from the previous quarter, according to Pitchbook. Although the total number of deals declined by 12.5%, this indicates a strategic shift—fewer deals, but with significantly larger investments.
Pitchbook also highlighted a growing positive sentiment among investors toward crypto, with the data showing a clear focus on high-value projects that attracted substantial funding.
Crypto Infrastructure Leads Q2 with $685M; Social Media and Gaming Gain Ground
Infrastructure projects dominated attention in Q2, underscoring their crucial role in the crypto industry. Monad, a layer-1 platform, secured an impressive $225 million in a Series A round, while BeraChain, a DeFi protocol with a proof-of-liquidity model, raised $100 million in its Series B round. Additionally, Babylon, a Bitcoin restaking platform, brought in $70 million in early-stage funding. Together, these projects attracted a total of $685 million, emphasizing the significance of infrastructure in shaping the future of crypto.
Two major funding rounds also stood out this quarter. Farcaster, a decentralized social media protocol, achieved a $1 billion valuation after raising $150 million in its Series A round. Zentry, a blockchain gaming platform, followed closely with $140 million in early-stage funding. These investments reflect the increasing interest in social media and gaming within the blockchain space.
Crypto Venture Funding Slows in 2023 After Record Highs in 2021-2022
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. Despite this, Q2 showed strong performance, with 2023 investment totaling $10.1 billion so far and projections pointing to $10.8 billion by year-end. Early-stage funding is becoming increasingly competitive, while later-stage rounds have seen a decrease in activity.
Blockchain Investments Top $102B; New Funds Aim to Raise $1.85B
Since June 2014, the blockchain industry has attracted over $102 billion through 5,400 funding rounds, as reported by DefiLlama. Pantera Capital and Paradigm are leading the charge in raising fresh capital, with Pantera targeting $1 billion and Paradigm aiming for $850 million. These initiatives are injecting significant new funds into the crypto market, driving further growth and innovation.