Crypto VC Funding Skyrocketed by 255% Quarter-over-Quarter to $2.8 Billion in Q1

April 8, 3:12 am

The 2024 crypto hype has brought new momentum to the market, helping the largest digital coins reach their multi-year highs. All the major cryptos saw double-digit gains, while Shiba Inu and Dogecoin ended Q1 as the absolute winners, with 196% and 142% price growth, respectively. However, the crypto`s price rally has also renewed interest among VC investors, with many returning to the crypto space.

According to data presented by AltIndex.com, crypto companies raised $2.8 billion in Q1, or 255% more than in the prior quarter.

The Highest Quarterly Funding Amount Since Mid-2022

Since the crypto winter, which spooked VC investors, crypto companies have struggled to raise money. Although cryptocurrencies had a big bounceback in 2023, the VC funding activity remained slow, with crypto startups raising an average of 80% less per quarter than at the peak of the VC funding in 2021 and 2022.

According to Crunchbase data, crypto companies raised $1.3 billion in Q1 2023, way down from $8 billion reported in the same quarter a year before. Although the quarterly funding amount rose to $1.9 billion in Q3 2023, it dropped to only $787 million in the last three months of the year, the figure last seen in 2020.

However, after a harsh 2023, investors are returning to the crypto market. The Crunchbase data show the total venture funding for crypto-related companies in the first quarter of 2024 totaled $2.8 billion, a 255% increase from the prior quarter and twice more than in the same period a year ago. Furthermore, statistics show this represents the highest quarterly funding amount in the crypto space since mid-2022.

With $2.8 billion raised in funding rounds in the three months of 2024, the cumulative funding amount in the crypto market rose to $74.8 billion, or $7.1 billion more than in the same quarter a year ago. US crypto companies have raised 55% of that value, or $41.5 billion. Europe`s crypto space saw $14.8 billion worth of VC investments, and the Asian market follows with $11.2 billion.

The Number of Investments more than doubled to 666 in Q1

Besides raising 255% more fresh capital, crypto companies also participated in more funding rounds than in the last quarter of 2023. With VC investors returning to the crypto market, the total number of investments doubled quarter-over-quarter and hit 666 in Q1, showing more companies got fresh capital to finance their business. Furthermore, this is the second-highest quarterly number since Q3 2022, which saw 702 investments in crypto companies.

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