Crypto VC Funding Doubled Year-over-Year to $5.8 Billion in H1

July 2, 7:22 pm

The crypto space has seen significant fluctuations over the past six months, with the largest cryptos adding and losing tens of billions of dollars in value week over week. However, the bullish sentiment that dominated most of the year's first half continued drawing the interest of VC investors, who poured much more money into crypto companies than last year.

According to data presented by AltIndex.com, crypto companies raised $5.8 billion in H1, or twice as much as in the same period a year ago.

VC Investors` Confidence in Cryptos Continues Rising

So far, 2024 has been a good year for investing in cryptos. The world's largest and most expensive cryptocurrency, Bitcoin, saw its price grow by 47% in the year's first half. Other large-cap altcoins, particularly meme coins and AI-related tokens, saw even bigger gains. For instance, Shiba Inu's price increased by 64% in six months, while ​AI tokens Artificial Superintelligence Alliance and SingularityNET jumped by 88% and 90% in value, respectively.

Crypto's strong performance and the growing investor confidence in a diverse range of crypto assets​ have helped crypto companies raise much more money than last year. According to Crunchbase data, in the first half of 2023, when many crypto companies struggled to raise money, the crypto space saw $2.9 billion in VC investments, the lowest figure since 2019. Statistics show that $1.3 billion was raised in Q1 2023 and another $1.6 billion in the following quarter.

Although the quarterly funding amount rose to $1.9 billion in Q3 2023, it plunged to only $787 million in the last three months of the year, pushing the 2023 total to $5.6 billion, or four times less than the year before.

However, after a harsh 2023, investors returned to the crypto market. The Crunchbase data show that total venture funding for crypto-related companies in the first quarter of 2024 totaled $2.7 billion, a 255% increase from the prior quarter. The following three months saw even more fresh capital, with $3.1 billion poured into crypto companies and their businesses, twice as much as in the same period a year ago.

With $5.8 billion raised in the first six months of the year, crypto companies have already outperformed their 2023 total by an impressive $200 million, showing VC investors' confidence in crypto continues rising.

The Number of Investments Jumped by 61% to 1,404

Besides raising double the value of fresh capital in the first six months of the year, crypto companies also participated in more funding rounds than in the same period a year ago. With VC investors returning to the crypto market, the total number of investments jumped by 61% and hit 1,404 in H1. Statistics show Q1 saw 736 investments, up from 438 in the same period last year. The difference remained similar in the past three months, with a total of 668 investments, compared to 429 in Q2 2023.

Get More Insights

Sign up and get access to a personalized dashboard, deeper insights, AI stock picks, stock alerts, weekly newsletter and much more.