7 months ago
28 ARTICLE AD
Following a challenging period for crypto startups, venture capital investments saw a significant uptick in 2024.
According to recent reports from Bloomberg, VC funds increased by nearly one-third from the end of last year. During the first three months of 2024, investments in crypto startups hit $2.5 billion, marking a 32% rise from the preceding quarter and mirroring levels seen in the same timeframe last year. Market-leading tokens like Bitcoin and Ethereum increased by over 50% during the same period.
The resurgence comes as crypto startups secure larger funding rounds and venture capital firms introduce new funds dedicated to digital assets.
Venture capitalists‘ reluctance to invest their funds, gathered during the last period of heightened crypto market activity, characterized much of 2023 and the latter part of 2022. However, the current year has seen a shift in this trend. The early indicators of a prolonged bull run are also visible in the current market, such as the renewed interest in meme coins.
Venture capitalists also note the industry’s progression towards maturity, with more initiatives being taken to increase institutional investor engagement. However, industry experts believe more development is needed to enhance crypto infrastructure to attract more investment.
