Cryptocurrency and blockchain projects have experienced a resurgence in venture capital investment after three successive quarters of decline. In the first quarter of 2024, fundraising activity continued to grow, attracting $2.49 billion through 603 deals.
This marked a 29% increase in funding and a 68% rise in the number of transactions, as reported by Galaxy Research.
The increase in investments by a certain time frame corresponds to the emergence of the Bitcoin ETF and upgrades in Bitcoin layer-2 solutions and restaking. This improvement, however, is still lower than the levels at which Bitcoin exceeded $60,000.
At the time of writing, the Bitcoin price was $63,009.53 showing a 4.06 % trading volume for the last 24 hours.
Nearly 80% of investments were directed towards early-stage startups, reflecting a cautious approach by funds towards high-risk late-stage firms.
These later companies saw minimal investments from large generalist venture capital funds. The infrastructure segment received the biggest share of the sector’s investment with 24%, spurred by large rounds such as EigenLayer’s $100 million.
The United States remains unbeatable in crypto venture capital flows, with 37.3% of the total venture deals being made.
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