Crypto Market Fundraising Soars to $2.4B in Q1 2024

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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 bull market observed during Q1 2024, 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.

Bullish Momentum in the Crypto Market

Venture capital funds have played a crucial role in this bullish phase. According to PitchBook, a total of 518 deals, amounting to $2.3 billion, were closed in the first quarter within the crypto market. 

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 market valuations have soared throughout the year.

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.

Noteworthy Fundraising Achievements in the Crypto Market

Several notable fundraising efforts have underscored the sector’s growth. Zama, a company specializing in fully homomorphic encryption (FHE), secured $73 million in funding. 

EigenLayer, another key player, 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.

Consistent VC Funding Above $1 Billion

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 two consecutive months of funding surpassing $1 billion.

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). 

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.

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