Venture capital (VC) investment in crypto firms is reportedly on the rise following a slump of seven consecutive quarters.
Citing data from private equity and venture capital deals information provider PitchBook, Reuters reports that VC investment in crypto companies rose by 41% quarter-on-quarter to reach a figure of $2.4 billion in the first three months of 2024.
The figure is still a fraction of the $11.1 billion that VCs pumped into crypto companies in the first quarter of 2022, per the report. Since then, crypto VC investments witnessed consecutive quarterly declines until the first quarter of this year.
At the time of the peak in VC investment in the crypto sector, Bitcoin (BTC) was trading below the then-all-time-high of a little over $69,000 reached in November of 2021. It happened months before the implosion of Terra (LUNA) and about a year prior to the collapse of the now-defunct FTX crypto exchange. Bitcoin hit a low of around $15,500 in November of 2022 and has since recorded a new all-time high of around $73,800.
Bitcoin is trading at $70,871 at time of writing.
On what to expect over the coming months, the report quotes PitchBook’s senior analyst Robert Le saying,
“The crypto industry is still in its early stages, and there is a lot of room for growth and innovation. Barring any major market downturns, we expect the volume and pace of investments to continue increasing throughout the year.”
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