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Crypto venture capital investments rose by 38% in the first quarter, ending a two-year trend.
Investments from crypto venture capital (VC) firms rose in the first quarter of 2024, as reported by a survey released by Crypto Koryo on April 4.
The analysis assessed growth through two separate metrics. VCs allocated nearly $2 billion to crypto initiatives, reflecting a 38% increase from Q4 2023. Additionally, VCs funded 250 crypto projects, which signifies a 49% rise compared to the prior quarter.
These results represent some of the highest figures since investments surged to $14 billion in Q4 2021.
Crypto Koryo remarked that the recent growth “could be the beginning of a new trend,” as it follows a two-year decline after the previous investment peak.
Investment focus varied
A number of prominent VC firms appeared on the list of the top 50 investors, with a16z, OKX Ventures, and Multicoin Capital and Protocol Labs leading as the top three by investment amount.
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Some products attracted more funding than others. The crypto exchange Hashkey secured $100 million through a series A fundraising round. The restaking platform EigenLayer also raised $100 million via a private fundraising effort. The blockchain and encryption company Zama obtained $73 million through a series A fundraiser, while the EVM-compatible blockchain Berachain raised $69 million.
Ethereum supported over 50 VC-backed projects, more than any other blockchain. Solana followed with 40 VC-funded projects, and Crypto Koryo attributed its growth to memecoin ICOs.
Both Polygon and Bitcoin hosted more than 10 VC-backed projects. Although both projects experienced a decline in relative standing, Polygon “is losing market share” while Bitcoin “remains strong,” according to Crypto Koryo.
Other findings elsewhere
Additional reports from Pitchbook indicated in February that VC funding began to show signs of recovery slightly earlier. Pitchbook identified a 2.5% increase in funding during Q4 2023 after a six-quarter downturn; however, it also noted that deal volumes decreased by 2.4% over the same quarter.
The low venture capital activity in previous quarters was partly attributed to events that led to declines in crypto prices, such as the crypto liquidity crisis of 2022 and the collapse of FTX in that year.
The post Crypto VC investments increased 38% in first quarter breaking 2 year trend appeared first on CryptoSlate.
