The Block Pro funding data shows that VCs invested about $13.7 billion in cryptocurrency and blockchain startups in 2024, up 28% from $10.7 billion in 2023. However, funding is still far below the peaks of $33.3 billion in 2022 and $29 billion in 2021.
Rob Hadick, general partner at Dragonfly, said: "It is surprising that VC funding has not accelerated faster than in 2023, with Bitcoin up more than 150% year-to-date. I expect this may be because the LP (limited partner) market has remained relatively sluggish, and most venture capital institutions have not yet had the confidence to seriously deploy their remaining funds until they raise (or at least are sure that they will be able to raise) new funds."
Galaxy Ventures general partner Will Nuelle also expressed the same view, saying that while the financing growth in 2024 is encouraging, it seems insignificant compared to the broader market rebound.
Meanwhile, Ed Roman, co-founder and managing partner of Hack VC, said the growth was in line with his expectations, "The election results were not announced until the end of the year, so the ripple effects have not yet been felt."
Early-stage financing dominated in 2024, with Pre-Seed rounds hitting an all-time high of more than 1,180 deals (up 68% year-on-year), highlighting the strong interest in emerging projects. Despite the overall decline in inflows, total seed round financing reached $3.4 billion, close to $3.8 billion in 2021. Series A financing exceeded 175 deals (up 59% year-on-year) and raised $2.8 billion (up 46% year-on-year). At the same time, mid- and late-stage financing decreased, paving the way for mergers and acquisitions (MA).
Overall, top cryptocurrency VCs are cautiously optimistic about 2025. While funding levels are not expected to return to the highs of 2021-2022, industry insiders agree that startups with strong product-market fit and high user adoption are most likely to receive funding in the coming year.
Miyuki
