Crypto Venture Capital Raises Over $1 Billion in Two Consecutive Months

For the first time since the onset of the 2022 crypto winter, venture capital funding is finding its footing again in the crypto industry. 

According to reports, the crypto industry recorded over $1 billion in venture capital funding for two months. This is the highest funding since late 2022, following the FTX collapse, intensifying the crypto downturn and repelling investor interest.

Crypto Venture Capital Funding Surge

According to data from RootData, April saw $1.02 billion raised across 161 investment rounds within the crypto industry. While this figure represents a slight decrease from the previous month’s total of $1.09 billion, spread over 186 rounds, it remains a noteworthy achievement.

This marks the first time since October/November 2022 that the crypto industry has experienced two consecutive months of funding exceeding the $1 billion mark. This consistency shows the sustained investor interest in the blockchain and crypto space.

Among these notable investments made in April is a $47 million backing led by BlackRock into Securitize, a firm specializing in tokenizing real-world assets.

Also, Monad, a promising new layer-1 blockchain often dubbed a “Solana killer,” secured a massive $225 million investment. This investment gained support from heavyweights like Paradigm and Coinbase Ventures.

Another noteworthy venture includes Auradine, a blockchain infrastructure startup that received $80 million in funding. Also, Berachain, a layer-1 blockchain built on the Cosmos network, secured a substantial $100 million investment in the same period.

Following this development, the funding for the blockchain industry since June 2014 has been over $100 billion. This figure was achieved via 5,195 funding rounds, as a report from DeFiLlama states.

Meanwhile, venture capital funding in 2024 showcases a clear trend, with blockchain infrastructure firms leading with $1.7 billion in investments. Decentralized finance (DeFi) protocols trailed closely behind with $626 million in funding.

Decentralized autonomous organizations (DAOs) have received the least funding, with only $3 million raised this year.

Funding Trajectory in the Crypto Industry

The crypto industry has seen an influx of over $3.67 billion across 604 funding rounds in 2024. This positive trajectory could potentially surpass the $9.3 billion raised in the previous year (2023).

This surge in investment activity aligns with the ongoing efforts of venture capital firms such as Pantera Capital and Paradigm. Notably, these two companies actively seek substantial sums of $1 billion and $850 million for new cryptocurrency-focused funds.

If successful, Pantera Capital’s $1 billion funding would mark the most significant fundraising round for the cryptocurrency industry since May 2022, when Andreessen Horowitz raised a staggering $4.5 billion.

Interestingly, despite the buoyant mood in the crypto space, Andreessen Horowitz opted not to inject additional funds into its cryptocurrency-focused fund. Instead, the firm has diversified its investment strategy, allocating resources to artificial intelligence and gaming sectors.

However, while there has been a recent increase in venture capital funding for projects related to crypto assets, it still falls significantly short of the peak levels seen in 2021 and 2022. During 2021 and 2022, the industry witnessed an impressive $38 billion and $27.3 billion raised, respectively.