Galaxy's research showed that AI and blockchain infrastructure startups attracted 85% of the funding.
The US dominated in crypto venture capital, accounting for 44% of deals in Q3.
Venture capital investment in the crypto sector declined in the third quarter of 2024, following a persistent
downtrend that began earlier this year. However, while overall numbers were
down, early-stage startups in AI and blockchain infrastructure got most of the investments.
According to a report by Galaxy, the total venture capital investment in crypto
and blockchain-focused startups reached $2.4 billion in Q3 2024, a 20% decline
from the previous quarter. Similarly, the number of deals fell by 17%,
with 478 deals completed.
Venture Capital Investments
This dip in activity is partly due to the ongoing
sluggishness in the broader crypto market, which has been focussing on two extremes, Bitcoin on one end and meme coins on the other,
but little interest from institutional investors.
Despite this decline, 2024 is still on track to match
or slightly exceed 2023’s total VC investments in crypto, signaling that
interest remains, albeit selectively. Early-stage companies attracted 85% of the funding
this quarter, a notable figure that demonstrates investor confidence in the
long-term potential of new projects even as late-stage funding dried up.
The longstanding correlation between Bitcoin’s price
and venture capital activity has notably broken down in 2024. Although Bitcoin
has risen substantially since the start of 2023, venture capital investments
into crypto startups have not followed the same upward trajectory.
The divergence has led to a slower venture capital
market overall, but the data shows that there are still pockets of
growth—particularly in the early stages of crypto development.
US Still Leads
Amid the broader venture capital slowdown, projects
integrating AI technologies have seen a significant surge in funding.
AI-focused crypto startups witnessed a fivefold increase in venture capital in
Q3 2024 compared to the previous quarter.
The US continued to dominate the crypto venture
capital landscape, accounting for 56% of total capital invested and 44% of
deals in Q3 2024. While Singapore, the UK, and the UAE also showed signs of
activity, their deal volumes and capital investments were significantly lower,
reinforcing the US’s position as the primary hub for crypto innovation and
venture capital.
Interestingly, while US-based companies pulled in
the most capital, companies founded in 2021 captured the largest share of that
investment. Those established in 2022, however, closed the most deals,
suggesting a balance between seasoned and fresh startups competing for capital.
Venture capital investment in the crypto sector declined in the third quarter of 2024, following a persistent
downtrend that began earlier this year. However, while overall numbers were
down, early-stage startups in AI and blockchain infrastructure got most of the investments.
According to a report by Galaxy, the total venture capital investment in crypto
and blockchain-focused startups reached $2.4 billion in Q3 2024, a 20% decline
from the previous quarter. Similarly, the number of deals fell by 17%,
with 478 deals completed.
Venture Capital Investments
This dip in activity is partly due to the ongoing
sluggishness in the broader crypto market, which has been focussing on two extremes, Bitcoin on one end and meme coins on the other,
but little interest from institutional investors.
Despite this decline, 2024 is still on track to match
or slightly exceed 2023’s total VC investments in crypto, signaling that
interest remains, albeit selectively. Early-stage companies attracted 85% of the funding
this quarter, a notable figure that demonstrates investor confidence in the
long-term potential of new projects even as late-stage funding dried up.
The longstanding correlation between Bitcoin’s price
and venture capital activity has notably broken down in 2024. Although Bitcoin
has risen substantially since the start of 2023, venture capital investments
into crypto startups have not followed the same upward trajectory.
The divergence has led to a slower venture capital
market overall, but the data shows that there are still pockets of
growth—particularly in the early stages of crypto development.
US Still Leads
Amid the broader venture capital slowdown, projects
integrating AI technologies have seen a significant surge in funding.
AI-focused crypto startups witnessed a fivefold increase in venture capital in
Q3 2024 compared to the previous quarter.
The US continued to dominate the crypto venture
capital landscape, accounting for 56% of total capital invested and 44% of
deals in Q3 2024. While Singapore, the UK, and the UAE also showed signs of
activity, their deal volumes and capital investments were significantly lower,
reinforcing the US’s position as the primary hub for crypto innovation and
venture capital.
Interestingly, while US-based companies pulled in
the most capital, companies founded in 2021 captured the largest share of that
investment. Those established in 2022, however, closed the most deals,
suggesting a balance between seasoned and fresh startups competing for capital.
The Role of PAMM, MAM & Copy Trading in Business Growth Strategies | Webinar
The Role of PAMM, MAM & Copy Trading in Business Growth Strategies | Webinar
The copy trading market is projected to double in size, growing from $2.2 billion to $4 billion by the end of this decade. In light of this, brokers and financial institutions are increasingly adopting PAMM, MAM, and Copy Trading solutions to scale operations and drive profitability. In this insightful webinar, Sergey Ryzhavin, Product Owner at B2COPY, outlines the advanced features of the B2COPY platform, showcasing how it enhances Copy Trading, PAMM, and MAM performance. Sergey also explores strategies for using these tools to attract new clients, improve customer engagement, and create additional revenue streams.
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The copy trading market is projected to double in size, growing from $2.2 billion to $4 billion by the end of this decade. In light of this, brokers and financial institutions are increasingly adopting PAMM, MAM, and Copy Trading solutions to scale operations and drive profitability. In this insightful webinar, Sergey Ryzhavin, Product Owner at B2COPY, outlines the advanced features of the B2COPY platform, showcasing how it enhances Copy Trading, PAMM, and MAM performance. Sergey also explores strategies for using these tools to attract new clients, improve customer engagement, and create additional revenue streams.
📣 Stay updated with the latest in finance and trading!
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Join us at FMLS:24 to connect with global institutional brokers. Secure your spot today! #fmls24
Join us at FMLS:24 to connect with global institutional brokers. Secure your spot today! #fmls24
🌟 Explore cutting-edge solutions and connect with fintech leaders at FMLS:24!
🌟 Explore cutting-edge solutions and connect with fintech leaders at FMLS:24!
🤝 Meet industry leaders at the premier event for brokers – FMLS:24. Secure your spot today!
🤝 Meet industry leaders at the premier event for brokers – FMLS:24. Secure your spot today!