The crypto venture capital funding has exceeded $1 billion for the second consecutive month in April 2024, showcasing the sustained interest of investors in the industry. RootData reported $1.02 billion in funding across 161 investment rounds, slightly lower than March’s $1.09 billion. Key fundraises in April included $47 million for Securitize, $225 million for Monad, $80 million for Auradine, and $100 million for Berachain. Blockchain infrastructure firms received the most funding in 2024 at $1.7 billion, followed by decentralized finance protocols at $626 million, with decentralized autonomous organizations receiving the least at $3 million.
The momentum in venture capital funding reflects the overall growth trend in the blockchain industry, with over $3.67 billion already invested in 2024 across 604 funding rounds. Since June 2014, the industry has seen over $100 billion in funding across 5,195 rounds. Major VC firms like Pantera Capital and Paradigm are seeking substantial sums for new cryptocurrency funds, with Pantera Capital potentially raising $1 billion, which would be the largest in the industry since 2022. Despite raising $7.2 billion for investments across various sectors, a16z chose not to bolster its cryptocurrency-focused fund.
The first quarter of 2024 saw a surge in VC funding in the crypto space, breaking a two-year downtrend. There was a notable 38% increase in funds invested during the quarter, signaling renewed investor confidence in the industry. The number of projects securing funding also saw a 49% increase, reaching levels not seen since Q4 2021. Web3 startups secured just under $1.9 billion in funding across 346 deals in Q1 2024, a 58% increase from the previous quarter. Analysts at Bernstein Research predict that crypto funds could reach $500 billion to $650 billion in the next five years, marking a significant leap from the current valuation of around $50 billion.
Overall, the second consecutive month of funding surpassing $1 billion highlights the sustained interest of investors in the crypto industry. Key fundraises in April included significant investments in Securitize, Monad, Auradine, and Berachain. Blockchain infrastructure firms dominated funding in 2024, with decentralized finance protocols following closely behind. The surge in funding coincides with major VC firms seeking substantial sums for new cryptocurrency funds, with projections suggesting significant growth in the industry over the next five years. The first quarter of 2024 also saw a surge in VC funding, with increased investor confidence and a higher number of projects securing funding compared to previous quarters.
