In April, crypto venture capital funding exceeded $1 billion for the second consecutive month, showcasing sustained investor interest in the industry. Data from RootData revealed that a total of $1.02 billion was raised through 161 investment rounds, slightly lower than March’s $1.09 billion over 186 rounds. Key fundraises included BlackRock’s $47 million investment in Securitize and a $225 million investment in Monad, a new layer-1 blockchain. Blockchain infrastructure firms led in funding for 2024, with $1.7 billion secured, followed by decentralized finance protocols with $626 million. The year is on track to surpass the $9.3 billion raised in 2023, with over $3.67 billion already invested in 604 funding rounds.
The surge in funding reflects a broader trend of growth within the blockchain industry. Since June 2014, the industry has seen over $100 billion in funding across 5,195 rounds. Major VC firms like Pantera Capital and Paradigm are seeking substantial sums for new cryptocurrency funds. Pantera Capital’s potential $1 billion raise would be the largest since a16z’s record $4.5 billion raise in May 2022. Despite raising $7.2 billion for investments across various sectors, a16z opted not to bolster its cryptocurrency-focused fund. VC funding in the crypto space in the first quarter of 2024 broke a two-year downtrend, with a notable 38% increase in funds invested and a 49% increase in the number of projects securing funding.
Web3 startups secured just under $1.9 billion in funding across 346 deals in the first quarter of 2024, marking a significant 58% increase from the previous quarter. Analysts at Bernstein Research predict that crypto funds could reach $500 billion to $650 billion within the next five years, a substantial leap from the current valuation of approximately $50 billion. The surge in funding coincides with major VC firms seeking significant sums for new cryptocurrency funds and reflects a broader trend of growth within the blockchain industry. Key fundraises in April included investments in Securitize, Monad, Auradine, and Berachain, totaling over $452 million.
Blockchain infrastructure firms lead in funding for the year, with $1.7 billion secured, followed by decentralized finance protocols with $626 million. The overall trend in venture capital funding reflects a promising outlook for the crypto industry, with total funding for the year on track to exceed the previous year’s total. Major VC firms like Pantera Capital and Paradigm are actively seeking substantial sums for new cryptocurrency funds, indicating continued interest and confidence in the blockchain space. The industry has seen significant growth in both funding and the number of projects receiving funding, suggesting a positive trajectory for the future of crypto investments.