Crypto startup funding rose to $2.4 billion in the first quarter of 2024, driven by expectations of lower interest rates and the launch of the first U.S. bitcoin spot exchange-traded funds (ETFs), according to Pitchbook data. This funding, spread across 518 deals, marked a 40.3% increase from the previous quarter, even as global venture capital investments fell to a near five-year low. The U.S. regulatory approval of spot bitcoin ETFs by Blackrock and Fidelity bolstered the legitimacy of the asset class, driving bitcoin to a record high of $73,803 in March. Startups focused on crypto and blockchain infrastructure led the funding, with Together AI securing the largest deal of $106 million. Pitchbook analyst Robert Le noted that early-stage deals are now earning higher valuations than late-stage ones. He also predicts an increase in mergers among crypto exchanges, custodians, and infrastructure providers as the market matures.
Crypto Startup Funding Hits $2.4 Billion in Q1
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