- Total invested money surged by 2.5%, but the number of transactions decreased by 12.5%.
- The report went on to say that competition in the crypto startup round was fierce.
Pitchbook data shows that the overall number of deals fell in Q2 compared to Q1. But crypto entrepreneurs still managed to obtain a little more venture capital investment than in Q1. According to a report from Pitchbook published on August 9th, total invested money increased by 2.5%, totaling $2.7B. But the number of transactions decreased by 12.5% when compared to Q1.
According to Pitchbook, this may indicate that the market is seeing increasing interest from institutional investors. The amount and acceleration of investments are expected to continue expanding throughout the year, according to Pitchbook. As favorable investor sentiment returns to cryptocurrency and there are no big market downturns in sight.
Fierce Startup Round
Layer-1 platform Monad raised $225 million in a Series A funding round, DeFi protocol BeraChain raised $100 million in a Series B round, and Bitcoin restaking platform Babylon raised $70 million in an early-stage round, all according to Pitchbook.
Pitchbook also reported two “mega-rounds”: Zentry, a blockchain gaming platform, received $140 million in an early-stage round, and Farcaster, a decentralized social media protocol, raised $150 million in a Series A round with a post-money valuation of $1 billion.
Although $25.3 billion and $29.4 billion in fresh capital were raised in 2021 and 2022, respectively, in the previous 18 months, investment for crypto businesses has slowed dramatically. At the present pace of investment, cryptocurrency companies will raise $10.8 billion this year, up from $10.1 billion in 2023.
The report went on to say that competition in the crypto startup round was fierce at the beginning of the fundraising process but waned as the round progressed.
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