Crypto Startups Raise $2.7 Billion in Q2 2024

Crypto startups in the second quarter of 2024 raised $2.7 billion in funding from venture capital firms, a slight increase from the previous quarter, despite a 12.5% decline in the number of deals completed.

The data, revealed in an August 9 report by Pitchbook, provides a comprehensive look at the crypto landscape and its venture capital ecosystem in Q2 2024. While the number of deals dropped to 503 from 575 in Q1, the increase in deal value suggests that individual deal sizes grew overall during the quarter.

Despite the positive sentiment, funding for crypto startups has significantly slowed down compared to 2021 and 2022 levels. In 2021, crypto startups pulled in $25.3 billion, followed by $29.4 billion in 2022[1]. The figures dropped to $10.1 billion in 2023 and currently stand at $5.4 billion after two quarters of 2024.

Pitchbook remains optimistic about the future, stating, "With positive investor sentiment returning to crypto and barring any major market downturns, we expect the volume and pace of investments to continue increasing throughout the year.”

The report's findings align with a broader trend observed in the crypto industry. While funding has declined for five consecutive quarters since Q1 2022, reaching $2.34 billion globally in Q2 2023, the quality of crypto startups has increased compared to the second half of 2022.

As the crypto market navigates through volatility, investors remain cautiously optimistic about the long-term potential of the industry. With the true believers still in the game and a potential slowdown in the decline of valuations, the crypto startup ecosystem continues to attract venture capital funding, albeit at a more measured pace compared to the previous bull market cycle.