2024

Momentum

April

Billion

The crypto market has witnessed a dramatic surge in fundraising, reaching an impressive $2.4 billion in the first quarter of 2024. This significant increase, reported by PitchBook, a renowned data provider for private and public market investors, reflects a substantial uptick in investment activity compared to the previous quarter.
A key driver behind this surge has been the positive shift in the crypto market sentiment. The <a href="https://thecoinrise.com/crypto-vc-investments-show-strong-growth-in-q1-galaxy-report/" rel="noopener noreferrer nofollow">bull market observed during Q1 2024</a>, buoyed by the Securities and Exchange Commission’s (SEC) approval of spot Bitcoin exchange-traded funds (ETFs), has invigorated institutional investors. The approval has been a catalyst, pushing cryptocurrency values to levels not seen in months and attracting considerable capital inflows.
<h2 id="span-style-font-weight-400-bullish-momentum-in-the-crypto-market-span">Bullish Momentum in the Crypto Market</h2>
Venture capital funds have played a crucial role in this bullish phase. According to <a href="https://www.crowdfundinsider.com/2024/05/225212-crypto-fundraising-increased-considerably-in-q1-2024-as-startups-secured-2-4b-across-518-deals-report/" rel="noopener noreferrer nofollow">PitchBook</a>, a total of 518 deals, amounting to $2.3 billion, were closed in the first quarter within the crypto market.&nbsp;
This represents a remarkable 40.3% increase in investments compared to the previous quarter. Deal volume, or the number of transactions, also rose significantly, with a 44.7% increase from the previous quarter. This surge underscores a robust investment climate as asset values and <a href="https://thecoinrise.com/hong-kong-vc-firm-announces-100m-fund-for-asian-crypto-startups/" rel="noopener noreferrer nofollow">market valuations have soared throughout the year</a>.
PitchBook experts anticipate that this growth in investment activity will continue throughout the remainder of the year, given the favorable market conditions and increased institutional interest.
<h3 id="span-style-font-weight-400-noteworthy-fundraising-achievements-in-the-crypto-market-span">Noteworthy Fundraising Achievements in the Crypto Market</h3>
Several notable fundraising efforts have underscored the sector’s growth. Zama, a company specializing in fully homomorphic encryption (FHE), secured $73 million in funding.&nbsp;
<a href="https://thecoinrise.com/tron-founder-justin-sun-claims-2m-tokens-in-epic-eigenlayer-airdrop/" rel="noopener noreferrer nofollow">EigenLayer, another key player</a>, received $100 million in Series B funding. However, the most significant deal of the quarter was from Together AI, which raised $106 million, propelling its valuation to an impressive $1.1 billion. These examples highlight the diverse and dynamic nature of investment within the cryptocurrency space.
<h2 id="span-style-font-weight-400-consistent-vc-funding-above-1-billion-span">Consistent VC Funding Above $1 Billion</h2>
For the second consecutive month, crypto venture capital funding has exceeded the $1 billion mark, reflecting sustained investor interest. April saw $1.02 billion in funding across 161 investment rounds, slightly down from March’s $1.09 billion across 186 rounds. This marks the first time since October-November 2022 that the crypto sector has witnessed <a href="https://thecoinrise.com/crypto-vc-firms-made-deals-worth-2-6b-in-q1-2023-report/" rel="noopener noreferrer nofollow">two consecutive months of funding surpassing $1 billion</a>.
Growth in the Crypto Custody Sector
The recent recovery in crypto markets has also positively impacted digital asset custody services. Earlier this year, Balance, a digital asset custodian based in Canada, announced it has once again achieved $2 billion in assets under custody (AUC).&nbsp;
Similarly, Korea Digital Asset (KODA), South Korea’s largest institutional crypto custody service, reported a nearly 248% increase in the value of crypto assets under its custody in the second half of 2023.
The post <a href="https://thecoinrise.com/crypto-market-fundraising-soars-to-2-4b-in-q1-2024/" rel="noopener noreferrer nofollow">Crypto Market Fundraising Soars to $2.4B in Q1 2024</a> appeared first on <a href="https://thecoinrise.com" rel="noopener noreferrer nofollow">Latest News and Insights on Blockchain, Cryptocurrency, and Investing</a>.

Crypto Market Fundraising Soars to $2.4B in Q1 2024

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