Crypto Startups Raised $2.7bn in Q2 Despite Fewer Deals

Crypto startups in the second quarter of the year raised $2.7 billion in funding from Venture capital firms.

This is slightly higher than what was raised in the first quarter of the year although the number of deals completed declined in Q2.  

The report was revealed by Pitchbook which gave comprehensive detail of the Crypto landscape and its venture capital ecosystem in Q2 2024.  

According to the report, In Q2 2024, crypto fundraising increased slightly as startups secured $2.7 billion across 503 deals. This represented a 2.5% increase in invested capital but a 12.5% decline in deal volume compared with the previous quarter.  

Pitchbook explained that the increase in deal value despite the drop in number of deals suggested that deal sizes increased overall during the quarter.  

They also commented on the current investor sentiment in the market and how it forecast the trajectory investors will tow in the next quarter.  

“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.” Pitchbook commented.  

The pitchbook report revealed that infrastructure led the way in Q2 2024, with the largest rounds raised by parallelization Layer 1 platform Monad ($225.0 million Series A), DeFi-specific Layer 1 platform Berachain ($100.0 million Series B), and bitcoin restaking platform Babylon ($70.0 million early-stage round). 

The report also highlighted another two mega rounds with over a $100 million raised in each round.  

“The other two mega-rounds of the quarter went to Farcaster, which raised a $150.0 million Series A round at a $1.0 billion post money valuation, and to blockchain-based gaming platform Zentry, which raised a $140.0 million early-stage round” Pitchbook added  

Funding for crypto startups have significantly slowed down compared to its 2021 and 2022 levels. In 2021 crypto startups pulled in $25.3 billion in funding while in 2022 it pulled in $29.4 billion.  

In 2023, Total investment raised by crypto startups hit $10.1 billion while the figure in 2024 is currently at $5.4 billion after two quarters.