Despite an overall bearish market, venture capital investments in the crypto sector continued to show signs of resilience in the second quarter of 2024. According to a recent report, venture capital investments in crypto slightly increased to $3.19 billion.

Crypto: venture capital investments resilient despite the bearish market 

$3.19 billion, this figure represents a modest increase from the $3.16 billion in the first quarter. This indicates continuous growth despite a broader slowdown in the crypto market. The total number of venture capital transactions also increased, rising from 682 in the first quarter to 739 in the second quarter! Approaching the record of 775 transactions set in the second quarter of 2022.

The increase in the median size of crypto transactions and pre-money valuations reflects a competitive investment environment. The median size of crypto transactions rose from $3 million to $3.2 million, while the pre-money valuation significantly jumped! Rising from $19 million to $37 million, approaching historical highs.

Prospects for the future of venture capital in the United States!

With generalist VCs largely in retreat, crypto-focused venture capitalists face increased competition! This could potentially give more leverage to founders in negotiations. Although the United States continues to dominate in terms of transactions and invested capital, regulatory headwinds could force more companies to seek financing and operations abroad.

According to the recent analysis, if the current pace continues, 2024 is on track to record the third highest level of investment capital and number of transactions, behind only the peak years of 2021 and 2022. The report suggests that allocators could be preparing to return to the crypto market with seriousness. This could lead to an increase in venture capital activity in the second half of the year.

Source : Cointribune EN - Jul 4, 2024