Crypto Venture Capital Rebound: Funding and Valuations Spike in Q1 2024 amid Improved Sentiment
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Crypto venture capital funding rebounded in Q1 2024 after a challenging 2023, with $2.52B raised across crypto and blockchain sectors. Deal activity is up 30-40% from late 2023.
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Sentiment has improved thanks to legal wins, DeFi growth, bitcoin ETF approvals, and crypto/blockchain sectors proving resilience after 2022's crashes. Institutional interest is materializing into investments.
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Deal flow is hot across areas like AI, zero-knowledge proofs, SocialFi, and Web3 gaming. Founders have lots of leverage - investors are pitching them amid competitive rounds.
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Valuations have spiked, especially for high-quality teams. Seed rounds average $30M-60M post-valuation. Investors accept lofty valuations expecting token markups.
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Funding expected to top 2023's $10.18B given improving macro conditions, but likely fall short of 2021/22 peaks. Bitcoin halving and US election inject uncertainty into 2024 outlook.