PitchBook, in a recent report, found that the crypto venture capital spend remained on the lower side throughout 2024.
Breaking it down by the numbers: deal values jumped to $2.4 billion in the final quarter of 2024 — a 13.6% increase from the third quarter but the number of deals declined to 351 from 411.
“While the rebound in funding suggests that investors remain willing to back established teams and differentiated technologies, the continued pullback in deal count highlights growing investor selectivity — a dynamic that first became evident in Q3,” PitchBook’s Robert Le wrote.
Optimists looking for a silver lining may see this as a sign that more projects are being concentrated on those that have the most promise. The data could be interpreted as a sign that crypto winter is still on.
When we compare 2023 to 2024 the numbers are not that different.
In 2018, crypto VC investment topped $10 billion, across 1,940 transactions. In 2023, investors deployed $10.3 billion via 1,936 deals.
Values, however, were on the rise in 2024 — another point to the optimists.
Here’s a breakdown: In the seed phase, median checks cut jumped from $2.5m to $3m last year. You also have the early stage funding which grew by 26% from $2.5 million to $4.80 million.
The late-stage saw only a small drop, from $6,4 million to $6,3 million. This suggests that “founders at more mature companies are raising smaller but strategically focused rounds rather than pursuing the larger checks seen in previous cycles” Le wrote.
The data can be manipulated to suit our narratives. There’s no denying that both the positives and the negatives are present. It’s not surprising that the crypto VC spend isn’t at 2021 levels. But don’t think that it will happen over night.
On the other side, data suggests that crypto VC is maturing.
It’s a pleasant break from the story of the jailstool.
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