Crypto startups are said to have received larger investments from venture capital firms in the second quarter of 2024 than in the first quarter. According to a report, a total of $2.7 billion was invested in crypto startups between April and June this year. This amount is 2.5 percent higher than what crypto startups raised between January and March. A total of 503 deals were completed between emerging Web3 companies and investors in the second quarter of 2024.
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. report by PitchBook.
Monad Labs, which calls itself a smart contract platform that scales Ethereum 1000x, secured the largest funding of the quarter in April this year, at $225 million (roughly Rs. 1,889 crore). Other startups on the top 10 list of secured investments include Farcaster, Zentry, Berachain, Babylon, Sophon, Avail, TradeAlgo, Movement Labs and Conduit. These startups have explored the sectors of decentralized finance (DeFi), blockchain networks and Web3.
“The increasing deal value but lower deal volume suggests that deal sizes increased overall in the quarter. With positive investor sentiment returning to crypto and no major market downturns, we expect the volume and pace of investment to continue to increase throughout the year. Infrastructure startups continued to lead the way in funding in the quarter,” the report said.
In seed and pre-seed funding, investors have also not hesitated to invest money. Arbelos Markets, MegaETH, Morph and Lagrange are among the young startups, currently in the early stages of their respective companies. Most of these companies are working on scalability solutions for blockchains and on introducing more Web3-friendly developer tools.
“The median pre-money valuation for seed stage was $23 million (approximately Rs. 193 crore); early stage, $63.8 million (approximately Rs. 535 crore); and late stage, $40.8 million (approximately Rs. 342 crore), representing changes of +97 percent, +166 percent and -36 percent, respectively, from full year 2023,” the report said.
According to PitchBook, these numbers indicate that investment rounds have become very competitive in the early stages, but less so in the later stages.
In the Indian web3 startup landscape, BitGet, CoinSwitch Ventures and Andreessen Horowitz have invested heavily in recent years.
(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)
