Crypto fundraising in Semester 1 - 2024

Market overview

The first half of 2024 has seen a significant resurgence in the cryptocurrency fundraising landscape. Despite a challenging global economic environment and the aftermath of a tough previous year, startups and projects in this sector have managed to attract substantial investor attention.

According to the analyzed data, a total of $4,232,117,928 was raised across 451 different projects during the first six months of 2024. These fundraising rounds covered various stages, with a predominance of Seed and Series A rounds.

Key fundraising statistics

• Total number of fundraising rounds: 451

• Total number of unique projects: 423

• Total amount raised: $4,232,117,928

• Average amount raised: $11,078,842

• Median amount raised: $5,000,000

  
  

  

Distribution by funding round

The distribution of funding rounds provides insight into where investor confidence lies:

• Seed: 155 rounds

• Strategic: 61 rounds

• Private: 54 rounds

• Series A: 54 rounds

• Pre-Seed: 29 rounds

• ICO: 28 rounds

  (Others: 70)

Seed rounds dominate the fundraising landscape, reflecting a strong investor interest in early-stage startups with high growth potential. The presence of numerous Strategic and Private rounds also indicates targeted investments in projects deemed to have strategic value or immediate scalability.

Distribution by category & vertical trends

Infrastructure projects have been particularly attractive to investors, indicating a robust interest in the backbone technologies of the blockchain ecosystem:

• Infrastructure: 105 rounds

• DeFi: 48 rounds

• Gaming: 39 rounds

• Meme: 29 rounds

• L2: 28 rounds

• DEX: 24 rounds

This distribution suggests that foundational technologies and DeFi projects continue to drive investor interest, reflecting ongoing confidence in the long-term value and transformative potential of these sectors.

Infrastructure projects led the funding rounds with 105 projects, underscoring the critical role of technological advancement in the blockchain ecosystem. DeFi followed with 48 projects, highlighting its continued relevance and innovation potential in financial services. Gaming, meme tokens, Layer 2 solutions, and decentralized exchanges (DEX) also attracted significant investments, showcasing a diverse interest across various blockchain applications.

Investor profiles

Specialized cryptocurrency venture capital funds have shown a marked interest in innovative infrastructure and DeFi projects. OKX Ventures and Animoca Brands stand out as the most active investors, with OKX Ventures closing 31 deals and Animoca Brands making 24 investments in the first quarter alone.

Market trends

1. Investment recovery: The cryptocurrency market has seen a significant increase in fundraising, marking a recovery from the declines observed in 2023. In March 2024, monthly investments exceeded one billion dollars, signaling renewed interest in digital assets. This trend reflects a bullish short-term outlook for the market.

2. Focus on infrastructure and DeFi: Projects related to blockchain infrastructure and decentralized finance (DeFi) have captured the bulk of investments. Restaking protocols and perpetual decentralized exchanges are particularly popular, attracting substantial funding and increased investor attention.

3. Geographic interest: The United States continues to dominate cryptocurrency fundraising, contributing significantly to global investments. Hong Kong follows closely as a major Asian hub, benefiting from favorable regulatory conditions. The UK stands out in Europe due to its advanced financial infrastructure, particularly for CeFi projects.

Conclusion

The first half of 2024 shows encouraging signs for the cryptocurrency market, with increased fundraising and marked interest in infrastructure projects. Investors, while more cautious than before, continue to support innovative initiatives, particularly those offering robust blockchain and DeFi solutions. This positive dynamic could well lay the groundwork for a new phase of growth for the sector in the coming months.

Sources:

• https://defillama.com/raises/investors - Data between 02/01/2024 - 12/06/2024

• https://www.linkedin.com/pulse/crypto-funding-report-q1-2024-rising-venture-capital-guido-lassally-xolye/