PitchBook Report: Crypto Fundraising Soars to $2.4B in Q1 2024 with Over 500 Deals
The crypto market has experienced a significant surge in fundraising, reaching a whopping $2.4 billion in the first quarter of 2024, fueled by a shift in market sentiment and fresh inflows.
According to a recent analysis by PitchBook, a leading data provider for private and public market investors, there has been a substantial increase in investment activity within the cryptocurrency sector compared to the previous quarter.
The bull market witnessed during Q1 played a pivotal role in driving the surge in investments.
Cryptocurrency values soared to levels not seen in months, enticing institutional investors to pour money into the market following the Securities and Exchange Commission’s (SEC) approval of spot Bitcoin exchange-traded funds (ETFs).
Venture capital funds actively participated in this bullish run.
According to the PitchBook report, a total of 518 deals amounting to $2.3 billion were closed in the first quarter of the year within the cryptocurrency industry.
This reflects a remarkable 40.3% increase in investments compared to the previous quarter.
Considering the heightened on-chain activities observed in Q4 2023, this surge marks a substantial leap forward for the sector.
Deal volume or the number of transactions also saw a notable rise of 44.7% in the preceding quarter.
As asset values increased, market valuations soared throughout the year, setting the stage for a promising investment climate.
The experts at PitchBook anticipate continued growth in investment activity throughout the remainder of the year.
Noteworthy examples of successful fundraising within the cryptocurrency market include Zama, a crypto firm specializing in fully homomorphic encryption (FHE), which secured $73 million in funding.
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