Crypto Investment Up in Q2, Yet Deal Count Drops: Latest Report
In the second quarter of 2024, crypto startups secured $2.7 billion in venture capital, marking a 2.5% increase from the previous quarter but a nearly 10% drop year-over-year, according to PitchBook data.
Despite this rise, deal activity declined by 12.5% from the first quarter. The digital asset market faced difficulties, with investor inflows into Bitcoin ETFs falling by 80% and overall market sentiment turning negative in late April and May. Rob Hadick of Dragonfly crypto venture fund noted that VC activity peaked earlier in the quarter before slowing down.
However, some analysts remain hopeful, anticipating improvements in token prices and institutional adoption. Investment continues to prioritize infrastructure over consumer applications, with only one major funding round for a crypto app recorded in Q2. Additionally, exit activity reached its highest level since early 2022, indicating ongoing consolidation in the sector.
Clever Robot News Desk 13th August 2024
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