Billion

BlackRock

Funding for crypto startups increased for the second consecutive quarter, reaching $2.4 billion in the first quarter of 2024, according to PitchBook data. This rise was driven by expectations of lower interest rates and the launch of the first U.S. bitcoin spot ETF, which spurred investor interest. 
The funding was distributed across 518 deals, marking a 40.3% increase from the previous quarter, PitchBook reported. Meanwhile, global venture capital investments fell to a near five-year low during the same period. 
Investment in digital asset startups has declined since peaking at over $10 billion in the first quarter of 2022, impacted by economic concerns and the collapse of major market players. However, the U.S. regulatory approval of spot bitcoin ETFs from major firms like BlackRock and Fidelity enhanced the legitimacy of the asset class, pushing bitcoin to a record high of $73,803 in March. 
PitchBook analyst Robert Le stated, “The recovery in publicly traded tokens and the ongoing rise in institutional adoption will drive increased VC funding.” 
Startups focusing on crypto and blockchain infrastructure attracted the most funding during the quarter, according to PitchBook. 
The largest deal involved Together AI, a decentralized cloud platform, which raised $106 million in an early-stage round led by Salesforce Ventures, valuing the company at $1.1 billion. 
“The competition for investment rounds is intense, especially at the early stages,” said Le. “Early-stage deals are currently seeing higher valuations compared to late-stage deals, but it remains to be seen if this trend will continue in the coming quarters.” 
However, exits remained low. Le anticipates an increase in mergers later this year, particularly among crypto exchanges, custodians, and infrastructure providers as the market matures. 
The post <a href="https://www.unlock-bc.com/123332/crypto-venture-capital-investment-reaches-2-4-billion/">Crypto Venture Capital Investment Reaches $2.4 Billion</a> appeared first on <a href="https://www.unlock-bc.com">UNLOCK Blockchain</a>.

Crypto Venture Capital Investment Reaches $2.4 Billion

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