7:45 p.m.
3
Takes a few minutes to read ▪
Despite an overall weak market, venture capital investment in the cryptocurrency space continues to show signs of recovery in the second quarter of 2024. A recent report showed that venture capital investment in cryptocurrency increased slightly to $3.19 billion.
Cryptocurrency: Venture capital investment remains strong despite bear market
$3.19 billion. This figure is up slightly from $3.16 billion in the first quarter. It indicates continued growth despite the overall slowdown in the cryptocurrency market. The total number of venture capital deals also increased, growing from 682 in the first quarter to 739 in the second quarter. This is approaching the 775 deals recorded in the second quarter of 2022.
Increases in cryptocurrency deal median value and pre-money valuation reflect a competitive investment environment. The median cryptocurrency deal value increased from $3 million to $3.2 million, while pre-money valuation increased significantly, from $19 million to $37 million, nearing an all-time high.
Future outlook for venture capital in the United States!
As generalist VCs make a big exit, crypto-specific venture capitalists are facing increased competition, which could give founders a stronger advantage in negotiations. While the US continues to dominate in terms of deals and investment capital, regulatory headwinds could force more companies to raise capital and expand overseas.
A recent analysis found that if the current pace continues, 2024 will be the third-highest year for investment capital and deal volume, behind the peaks of 2021 and 2022. The report suggests that investors may be preparing to seriously return to the cryptocurrency market, which could lead to increased venture capital activity in the second half of the year.
Make the most of your Cointribune experience with our “Read to Earn” program. Earn points for every article you read and get access to exclusive rewards. Sign up now and start earning rewards.
Click here to join Read to Earn and turn your crypto passion into rewards!
Evolving and adapting to the world is the best weapon to survive in this world. Cryptocurrency Community Manager. Interested in Blockchain and all its derivatives. Sharing my experience has allowed me to know the area I am passionate about and to be able to compile and digitize information.
Disclaimer
The views, thoughts and opinions expressed in this article are those of the author and should not be taken as investment advice. Please conduct your own research before making any investment decisions.
