In the last quarter of 2024, the crypto funding landscape experienced a shift towards larger rounds, ending the year on a high note. December saw a surge in VC funding, reaching over $3 billion, driven by late-stage and undisclosed rounds. This growth marked a significant increase from the previous year’s funding levels. The month also witnessed a 72% expansion in investments compared to the previous month, with a focus on advanced-stage projects.
Despite the rise in undisclosed or unannounced deals, seed rounds remained popular, indicating investor confidence in the potential of the crypto market. The volatile year closed with December’s record-breaking funding, averaging $1 billion per month. VC funds set new records, targeting a variety of projects, with over a quarter of deals going towards AI projects. Additionally, ICO and IDO services remained active, raising millions in funding.
US-based startups dominated the VC funding scene in 2024, with a surge in investment following the US election results. Other countries such as Singapore, the UK, China, and the UAE also saw active VC climates. However, the US Securities and Exchange Commission’s regulatory oversight in previous years had hindered investment in crypto startups. Angel investors played a key role in funding AI projects, DeFi, infrastructure, DEX, and NFT projects, indicating diverse interests in the crypto space.
Despite the influx of funding, the crypto market remains competitive, with a focus on L1 and L2 infrastructure projects. The increase in VC funding signals a positive outlook for the crypto industry, with large deals like the $250 million private late-stage round for Avalanche leading the way. The final months of the year saw a frenzy of funding activity, with high-rate deals and undisclosed OTC rounds contributing to the overall growth in investment.
Overall, the crypto funding landscape in Q4 of 2024 showcased a shift towards larger rounds and increased investor confidence. The record-breaking funding levels in December, driven by VC funds and undisclosed rounds, highlight the growing potential of the crypto market. With key players like the US leading the way in investment, the crypto industry is poised for further growth in the coming year. Angel investors and VC funds remain active in various sectors, indicating a diverse range of interests and opportunities in the evolving crypto space.
