Crypto startup funding rises in Q2 despite fewer deals, signaling strong institutional interest.
According to data from Pitchbook, crypto startups raised marginally more from venture capital funding in Q2 than in the first quarter of the year, despite the fact that the total number of deals decreased.
According to a report released on August 9, Pitchbook reported a 2.5% increase in total invested capital, but a 12.5% decrease in the number of transactions compared to Q1.
According to Pitchbook, this could indicate that institutional investors are more optimistic about the market.
“With positive investor sentiment returning to crypto and barring any major market downturns, we expect the volume and pace of investments to continue increasing throughout the year,” wrote Pitchbook.
Pitchbook observed that infrastructure projects are the most successful in Q2 funding. Monad, a layer-1 platform, raised $225 million in a Series A funding round, BeraChain, a DeFi protocol that promotes a new proof-of-liquidity model, raised $100 million in a Series B round, and Babylon, a Bitcoin restaking platform, raised $70 million in an early-stage round.
Farcaster, a decentralized social media protocol, raised $150 million in a Series A round at a $1 billion post-money valuation, and Zentry, a blockchain gaming platform, raised $140 million in an early-stage round. Additionally, Pitchbook identified two “mega-rounds.”
However, the funding of crypto ventures has experienced a substantial decline in the past 18 months, as compared to 2021 and 2022, which saw a total of $25.3 billion and $29.4 billion in new capital raised, respectively.
