Report: Investments in Crypto projects reached $2.4 billion in the first quarter of 2024
Date: 2024-05-20 Author: Gabriel Deangelo Categories: CRYPTO PAYMENTS
Cryptocurrency startups attracted significant investment in early 2024. According to a report by the analytical firm PitchBook, in the first quarter of this year, $2.4 billion was invested in crypto projects through 518 transactions with venture capital funds. This indicates growing investor interest and confidence in the cryptocurrency industry.
Investment Capital Growth
PitchBook experts note that the volume of investment capital increased by 40.3% compared to the previous quarter. Transaction volume also increased by 44.7%, highlighting the positive sentiment in the market. Analysts attribute this growth to increased investor interest in promising cryptocurrency projects and startups, which is reflected in an increase in the number of transactions and funding volumes.
Leaders in Funds Raised
In the first quarter of 2024, infrastructure startups attracted the largest investments. The largest funding rounds were from the EigenLayer re-staking protocol, which raised $100 million in Series B, and the French project Zama, which completed its Series A with $73 million. These successes demonstrate the high potential of infrastructure projects in the cryptocurrency space, attracting significant amounts of capital.
Average Investment Sizes
The average investment size varied depending on the stage of development of startups:
- At the pre-seed and seed round, the average investment size was $2.7 million, which is 25% more than last year.
- Early-stage startups raised an average of $5 million.
- At the late stage, the average investment size was $5.8 million, which is 9.7% less than last year.
These data show that investors are actively supporting new projects ready to develop and enter the market, although there is a slight decline in investment at later stages.
Forecasts for 2024
PitchBook analysts expect the volume and pace of investment in crypto projects to continue to grow throughout 2024. Most venture capital funds are raising capital and do not anticipate major market downturns. Optimistic forecasts are supported by an increase in the number of transactions and an increase in the volume of funds raised.
Comparison with Galaxy Research Data
Previously, Galaxy Research specialists also reported significant investments in the cryptocurrency sector, estimating them at $2.49 billion in the first quarter of 2024. These data are almost identical to the figures presented by PitchBook, which confirms the steady growth of investor interest in cryptocurrency startups and their potential.
The growth of investments in cryptocurrency projects in the first quarter of 2024 indicates the continued development and strengthening of the cryptocurrency industry. The increase in deal volume and capital raised shows investor confidence in this market and its prospects. Analysts predict further growth in investment, which could lead to the emergence of new successful projects and the development of existing ones.
