Crypto Firms Garner $1.75B in Venture Capital Investments, Surpassing October’s Total; Dominated by Two Leading Bitcoin Mining Companies.
November witnessed an impressive surge in crypto fundraising, marked by 98 deals totaling a substantial $1.75 billion – a remarkable $1 billion surge from the previous month, October.
Two relatively unfamiliar Bitcoin mining companies, Northern Data and Phoenix Group, secured more than half of the raised funds, amassing $600 million and $370 million, respectively, as outlined in a recent report by Messari. Blockchain.com secured the third position, raising $110 million in a Series E round. The top 10 also featured the controversial Layer 2 project, Blast, which announced a $20 million round led by Paradigm. Post-launch, the protocol attracted $500 million in TVL within five days, now standing at an impressive $621 million according to DefiLlama.
Excluding the substantial rounds closed by Northern Data and Phoenix Group, crypto fundraising still reached around $750 million, aligning with the monthly funding average since the August low. Notably, the average deal size experienced a robust 50% increase, reaching $7.5 million compared to the previous month’s $5 million.
This month’s substantial fundraising gains come at a crucial time with the Bitcoin halving on the horizon and concerns about reduced block subsidies impacting miners’ profitability. The sizable investments in these companies signal optimism, with Messari researcher Kel noting that venture capitalists closely tied to the sector anticipate higher BTC prices.
Messari’s report highlighted that miners constituted 90% of the deals in the infrastructure sector, while exchanges (such as Blockchain.com) and payments projects represented approximately 75% of the rounds closed in the financial sector.
Despite the crypto industry witnessing a surge in token prices, this rally has yet to translate into more significant private market flows, according to Kel. Investors appear to be in a ramping-up stage, generating increased activity that has not yet manifested in announced deals.