Crypto Startups Secure $2.7 Billion in Q2 2024 Amid Shifting Investment Patterns

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• Crypto startups raised $2.7 billion across 503 deals in Q2 2024, with capital increasing 2.5% but deal count dropping 12.5% from Q1.
• Infrastructure startups led funding rounds, with Monad raising $225 million, Berachain securing $100 million, and Babylon raising $70 million.
• Seed and early-stage valuations soared (97% and 166% respectively), while late-stage valuations fell 36%, suggesting investor caution in later stages.

According to a report by PitchBook, startups in the crypto space secured $2.7 billion across 503 deals. While the invested capital saw a 2.5% increase from Q1 2024, the number of deals dropped by 12.5%.

The report highlights a trend of larger deal sizes in the crypto market, showing that investor confidence remains strong despite regulatory challenges and market volatility. It also notes that while the number of deals decreased, their value increased overall during the quarter.

Infrastructure startups dominated funding rounds, with Monad, a parallelization Layer 1 platform, raising $225 million in a Series A, and DeFi-specific L1 Berachain securing $100 million in a Series B. Babylon, a Bitcoin restaking platform, raised $70 million in an early-stage round. 

Additionally, blockchain-based social media platform Farcaster raised $150 million in a Series A, reaching a $1 billion post-money valuation.

Furthermore, it revealed that while seed and early-stage valuations increased significantly—seed-stage valuations rose by 97.0% to $23.0 million and early-stage by 166.0% to $63.8 million—late-stage valuations dropped by 36.0% to $40.8 million, indicating a more cautious investor approach at later stages.