Crypto Fundraising Dips 23% In Q1 2024 But Still Shows Optimistic Background

Key Points:

• Q1 crypto fundraising volume drops by 23%, but early-stage deals surge by 73%.
• Confidence in crypto rebounds with a 38% increase in funds invested and a 49% rise in funded projects.
• Venture capital injection exceeds $2 billion, with March alone recording $1.1 billion across 180 deals led by crypto-native VCs.

A recent study from Messari has shed light on the first quarter’s crypto fundraising scene, revealing a 23% decline in overall crypto fundraising volume but a remarkable 73% surge in early-stage deals.

Q1 Crypto Fundraising: Volume Dips, Early-Stage Deals Surge

Notable investments were made in companies such as Eigen Labs, Hashkey Group, Optimism, Freechat, and Zama. This decrease in fundraising is attributed mainly to an exceptional month in Q4 last year, led by Bitcoin miners.

Despite the dip in crypto fundraising, early-stage deals saw a significant boost, indicating a bullish sentiment toward new opportunities. The report examines both optimistic and pessimistic scenarios for companies like Optimism and Zama, alongside insights into investment trends across different stages.

Venture Capital Soars: $2 Billion Injected, Led by Crypto VCs

However, data analyst Crypto Koryo highlights a 38% increase in funds invested and a 49% rise in funded projects, signaling renewed confidence in the crypto space reminiscent of patterns observed in Q4 2020. Venture capital funding particularly soared, surpassing $2 billion, a 38% increase from Q4 2023, with 250 projects receiving funding.

March alone witnessed a staggering $1.1 billion investment across 180 deals, showcasing a remarkable 52.50% month-on-month increase.

Leading this surge were crypto-native VCs like Andreessen Horowitz Crypto, OKX Ventures, Multicoin Capital, Paradigm, and Polychain, marking a shift from traditional banking and non-crypto VC dominance in previous quarters. These developments underscore rising investor interest amidst the evolving crypto market dynamics.