Crypto startups reportedly managed to see bigger investments from venture capital firms in the second quarter of 2024, compared to the first. As per a report, a total of $2.7 billion were invested into crypto startups between April and June this year. This amount is 2.5 percent higher than what was fetched by crypto startups between January and March. A total of 503 deals were finalised in the second quarter of 2024 between up-and-coming Web3 firms and investors.
Paradigm, Brevan Howard Asset Management, Framework Ventures, Maven 11, Dragonfly, and Haun Ventures have been named among the top ten Web3 investors according to a report by PitchBook.
Monad Labs, which calls itself a smart contract platform that scales Ethereum by 1000 times, secured the quarter’s largest funding of $225 million (roughly Rs. 1,889 crore) in April this year. Other startups on the top ten list of secured investments include Farcaster, Zentry, Berachain, Babylon, Sophon, Avail, TradeAlgo, Movement Labs, and Conduit. These startups have been exploring the sectors of decentralised finance (DeFi), blockchain networks, and Web3.
“The increasing deal value yet lower deal count suggests that deal sizes increased overall during the quarter. With positive investor sentiment returning to crypto and barring any major market downturns, we expect the volume and pace of investments to continue increasing throughout the year. Infrastructure startups continued to lead the way in funding during the quarter,” the report stated.
In seed and pre-seed funding as well, investors have not resisted pouring in funds. Arbelos Markets, MegaETH, Morph, and Lagrange are among young startups, presently in the early stage of their respective businesses. Most of these firms are working on scalability solutions for blockchains as well as to bring in more Web3-friendly developer tools.
“The median pre-money valuation for the seed stage was $23 million (roughly Rs. 193 crore); the early stage, $63.8 million (roughly Rs. 535 crore); and the late stage, $40.8 million (roughly Rs. 342 crore) representing changes of +97 percent, +166 percent, and –36 percent respectively, from full-year 2023,” the report noted.
These numbers, PitchBook said, indicate that investment rounds have become highly competitive at the earlier stages but less so at the later stage.
In the Indian web3 startup landscape, BitGet along with CoinSwitch Ventures, and Andreessen Horowitz have poured in investments in recent years.
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