Blockchain VC Funding Hit $10 Billion Year-to-Date, 25% more than in 2023

November 3, 8:33 am

After a significant slowdown last year, blockchain has again become an attractive sector for VCs in 2024, with the total value of deals outperforming 2023 figures two months before the end of the year.

According to data presented by AltIndex.com, blockchain companies raised $10 billion in funding rounds year-to-date, or 25% more than in the entire 2023.

Total Number of Deals Jumped by 61% to 1,364 YTD

Although blockchain VC funding is still far below the levels seen in 2021 and 2022, the record years when looking at the total amount of money poured into this sector, blockchain companies are definitely drawing more attention in VC space than they did last year, and there are several reasons for that.

Clearer regulations around blockchain and cryptocurrencies, the growing number of web3 projects and decentralized applications, and the rise of green blockchain technology are making blockchain an attractive sector for VCs in 2024, as more and more investors look for both technological innovation and a hedge against traditional tech market saturation. The Crunchbase data proves this.

Last year, VC investors poured $7.9 billion of fresh capital into blockchain companies. This figure represents a significant drop compared to record levels in 2021 and 2022, when they raised $17.9 billion and $27.4 billion, respectively. However, during the ten months of this year, the total value of VC capital poured into the blockchain sector hit $10 billion, or 25% more than in the entire last year.

The number of investments also increased. The Crunchbase data show blockchain companies and startups saw 1,364 VC investments in the ten months of 2024, or 61% more than the 2023 total of 845.

Cumulative Funding Climbs to Almost $105 Billion

With $10 billion raised in funding rounds year-to-date, the cumulative funding amount in the blockchain sector has jumped to nearly $105 billion. In global comparison, most of that money went to the United States.

Statistics show US companies raised $52.7 billion in funding rounds, with California as the leading hub. Their Asian counterparts saw twice less fresh capital, or nearly $20.5 billion, while European blockchain companies followed with $17.7 billion.

Analyzed by type of funding, initial coin offering ranked as the most popular way to raise fresh capital in the blockchain space. Statistics show blockchain companies raised $18.6 billion through ICOs, more than any other funding type. Series A funding rounds have brought in around $14 billion so far. Series B and seed funding rounds follow, with $13.2 billion and $11.2 billion, respectively.

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