Crypto Startup Funding Exceeds 100 Billion Milestone in a Decade

Crypto Startup Funding Surpasses $100 Billion Milestone in a Decade


Ruholamin Haqshanas
Updated:
June 17, 2024 01:58 EDT
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2 min read


Over the past ten years, funding for crypto startups has seen a remarkable increase, surpassing the impressive $100 billion mark since May 2014.
Despite facing regulatory uncertainties and market fluctuations, the crypto industry has experienced both highs and lows, with funding consistently reaching new heights.
According to data gathered by TVL aggregator DefiLlama, the total funding for the cryptocurrency sector has now reached $101.35 billion as of June 16, 2024.
Rising Crypto Funding
In May 2014, just five years after Bitcoin’s creation and a year before Ethereum was launched, the recorded funding for crypto startups for the entire month was a modest $17.14 million.
Fast forward to May 2024, and the industry saw a substantial increase in funding, reaching $280.25 million for the month.
Although this figure was significantly higher than a decade earlier, it fell short of the previous month’s record of $777.11 million.
The peak of crypto startup funding was in October 2021, with over $7 billion raised during that month. The second-highest funding was in February 2022, totaling $3.67 billion.
Recent studies show that nearly half of all crypto funding comes from investors in the United States. Other countries, such as the United Kingdom and Singapore, also contribute to the investments, with 7.7% and 5.7% respectively, as of the second quarter of 2023.
In late 2023 and the first half of 2024, several high-profile funding deals took place. Companies like Together.AI and Wormhole secured investments of $225 million each, while Totter and Eigenlayer raised $101 million and $100 million, respectively. Swan Bitcoin also raised $165 million, and Blockchain.com secured $110 million.
These significant investments showcase the ongoing confidence and interest in the crypto industry.
Crypto Fundraising Hits $2.4 Billion in Q1 2024
The crypto market has seen a substantial increase in fundraising, reaching an impressive $2.4 billion in the first quarter of 2024, driven by changing market sentiment and new inflows.
A total of 518 deals totaling $2.3 billion were closed in the first quarter of the year within the crypto industry, marking a significant 40.3% increase in investments compared to the previous quarter.
With heightened on-chain activities observed in Q4 2023, this surge represents a significant step forward for the sector. Deal volume also saw a notable increase of 44.7% in the previous quarter.
In April, funding was distributed across 161 investment rounds, totaling $1.02 billion, slightly lower than March’s $1.09 billion across 186 rounds.
The approval of spot Bitcoin exchange-traded funds (ETFs) by the US Securities and Exchange Commission (SEC) in January of this year has played a crucial role in providing institutional investors with easier access to the crypto asset class.
After years of unsuccessful applications, the SEC’s decision has made it more convenient for institutional investors to include cryptocurrencies in their portfolios.