Crypto startup funding surged to an impressive $2.4 billion in the first quarter of 2024, a significant leap fueled by expectations of lower interest rates and the groundbreaking launch of the first U.S. bitcoin spot exchange-traded funds (ETFs). According to Pitchbook data, this funding, which spanned 518 deals, represents a 40.3% increase from the previous quarter, despite global venture capital investments plummeting to a near five-year low.
The U.S. regulatory approval of spot bitcoin ETFs by financial giants Blackrock and Fidelity has played a crucial role in legitimizing the crypto asset class. This milestone drove bitcoin to an all-time high of $73,803 in March 2024. Startups focusing on crypto and blockchain infrastructure dominated the funding landscape, with Together AI securing the largest deal at $106 million.
Pitchbook analyst Robert Le highlighted a shift in investor sentiment, noting that early-stage deals are now attracting higher valuations compared to their late-stage counterparts. He also anticipates an increase in mergers among crypto exchanges, custodians, and infrastructure providers as the market continues to evolve and mature.
Key highlights include:
- $2.4 billion in crypto startup funding in Q1 2024.
- 40.3% increase in funding from the previous quarter.
- 518 deals recorded, marking a vibrant period for crypto investments.
- Bitcoin ETFs approved by Blackrock and Fidelity, driving bitcoin to $73,803.
- Together AI clinched the largest deal with a $106 million investment.
This surge in funding and the subsequent rise in bitcoin’s value underline the growing confidence in the crypto sector, setting the stage for further innovations and market consolidations in the coming months.
