As we end the first of March, lets look back on venture capital activity from February.
We can summarize the month as being shorter, however, overall venture capital financing in February decreased slightly from that of January. However, the number companies raised was marginally higher.
TIE Terminal reported that $1.57 billion in funding was given to 132 companies at the beginning of this year.
DeFi led the charge last month with around $175 Million raised by 20 companies. DeFi led the way in deals last month, when 20 companies raised around $175 million.
It’s not only DeFi that is getting the attention. Other firms have also raised significant amounts of money, such as Bitwise which has raised over $70m through an equity raising led by Electric Capital.
Raise the gift cards company is using its $63 million funding round to enhance its gift card blockchain offerings. This round of VC funding caught my interest when announced last month.
Comparing the round size to that of January is a good way to see the difference. Phantom and Movement Labs had round of $100 and $150 million respectively.
There is a notable drop in the size of deals so far this season.
I don’t want to overreact, especially given that the market is still very bullish, and that I spoke with VCs many times who confirmed that the sector was quite active. But this trend is what we’re looking at right now.
As you can see, the number of larger deals seems to have peaked in December of last year, though we’re still seeing deals above $50 million — take Raise and Bitwise, for example.
This week the average transaction size was $9 million. The average deal size was $10 million on the last day in February.
It’s only February, but I hesitate to label any of these data as a trend. We are still a long way from the peak in crypto VC, when it topped out at $23 billion by 2022.
I am intrigued, particularly since PitchBook’s Robert Le informed us last year of his expectations for a stronger bull market in the 2025 timeframe.
Bring on the party!
Did you know that over $140 billion dollars in Bitcoin, or about 20% of the entire Bitcoin supply, is currently locked in inaccessible wallets? Or maybe you have lost access to your Bitcoin wallet? Don’t let those funds remain out of reach! AI Seed Phrase Finder is here to help you regain access effortlessly. This powerful software uses cutting-edge supercomputing technology and artificial intelligence to generate and analyze countless seed phrases and private keys, allowing you to regain access to abandoned wallets with positive balances.
