Venture capital pours $2.4B into crypto startups in early 2024

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According to data compiled by Galaxy Research, investors injected $2.49 billion across 603 deals in the first quarter of 2024.

Investments in the first quarter were influenced by innovation in areas like restaking, modularity, Bitcoin layer-2 solutions, and macroeconomic factors.

“This was the first rise in both capital invested and deal count in 3 quarters, perhaps signaling that Q4 2023 was the “bottom,” although a continuation of QoQ increases – and a more meaningful increase – would confirm that over the coming quarters.” In addition, 80% of the invested capital in the quarter was allocated to early-stage startups. In contrast, later-stage companies faced tougher conditions, as many larger, generalist venture capital firms have either left the sector or substantially cut back their investments, noted Galaxy.Investment activity within the industry was dominated by the infrastructure sector, which accounted for 24% of total capital raised in the quarter, including EigenLayer’s $100 million funding round.

 

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