Crypto VC Market 'Tepid' as Q3 Investments Declined 20%, Says Galaxy Digital
Crypto venture capital activity in 2024 has been subdued, particularly in Q3, with $2.4 billion invested across 478 deals, marking a 20% decline in funding and a 17% drop in deal count from Q2. Total investment for the first three quarters stands at $8 billion, suggesting minimal growth compared to 2023. Interest from institutional allocators has decreased due to high interest rates and the emergence of spot bitcoin and ether ETFs. Early-stage firms received 85% of capital, while later-stage companies received only 15%. Valuations rebounded in Q2 and remained stable in Q3, with a median pre-money valuation of $23 million. The U.S. led investment at 56%, followed by the UK at 11%. Fundraising for new crypto venture funds has been challenging, with only $140 million raised across eight funds, indicating 2024 may be the weakest year for crypto VC fundraising since 2020.
