Venture Capital Investments in Crypto Startups Surge to $1.9 billion in Q4 2023
Summary:
Crypto startups experienced a surge in venture capital investments in the final quarter of 2023, reaching $1.9 billion. This trend marked the first increase since March 2022 and coincides with renewed investor interest in crypto startups reported in early 2024. Several firms, such as Taiko, Singularity, and AltLayer successfully raised significant funding. Elsewhere, AI prediction platform PredX and digital trading platform Ouinex also received substantial investment during this period.
Crypto startups have seen a rise in venture capital investments of $1.9 billion in the last quarter of 2023, marking the first increase since March 2022, according to a recent report by PitchBook. A 2.5% growth from the previous quarter, this is paired with a noticeable rekindling of investor interest in crypto startups in early 2024, assisted by the sanctioning of Bitcoin exchange-traded funds. Several crypto startups such as Lava Protocol, Analog, Helika, Truflation, and Omega raised funds in February. Furthermore, venture capital firm Andreessen Horowitz (a16z) announced an investment of $100 million into Ethereum's EigenLayer protocol. Binance Labs also funded the ecosystem via its Renzo restaking service. Avail, a consensus layer, received $27 million in a seed funding round spearheaded by Founders Fund and Dragonfly. Simultaneously, Hack VC generated $150 million to put into nascent crypto and AI startups.
Cointelegraph's VC Roundup points to several startups that received funds in February. Taiko, an Ethereum layer 2 scaling solution preparing for its mainnet initiation, secured $15M in Series A funding, increasing the total funds raised to $37 million. On the other hand, Singularity, a decentralized finance protocol, disclosed a $2.2 million funding round for DeFi compliance. As a part of its evolution, it aims to provide institutional investors with compliant access to DeFi applications.
AltLayer, a protocol that enables the launch of native and restaked rollups, successfully garnered $14.4 million in strategic funding from co-leading investors Polychain Capital and Hack VC. Finally, AI prediction platform PredX collected $500K in a pre-seed round, reaching a valuation of $20 million. Digital trading platform Ouinex also raised more than $4 million through seed and private rounds from its trading community.
Published At
3/2/2024 11:28:19 PM
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