Crypto VC investments increased 38% in first quarter breaking 2 year trend Crypto VC investments increased 38% in first quarter breaking 2 year trend
Investments rose in Q1 2024 but have yet to return to their late 2021 peak.
2 min read
Updated: Apr. 5, 2024 at 2:32 am UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
Crypto venture capital (VC) investments increased in the first quarter of 2024, according to a survey published by Crypto Koryo on April 4.
The analyst measured growth across two distinct metrics. VCs invested nearly $2 billion in crypto projects, marking an increase of 38% from Q4 2023. VCs also invested in 250 crypto projects, representing an increase of 49% from the previous quarter.
The results are some of the best since investments peaked sevenfold at $14 billion in Q4 2021.
Crypto Koryo noted the latest growth “could be the start of a new wave,” as it concludes a two-year downtrend followed the earlier peak in investments.
Investment focus varied
Several significant VC firms made the list of top 50 investors, with a16z, OKX Ventures, and Multicoin Capital and Protocol Labs ranking as the top three entities by amount invested.
Certain products raised more than others. The crypto exchange Hashkey raised $100 million through a series A fundraiser. The restaking platform EigenLayer raised $100 million through a private fundraiser. The blockchain and encryption firm Zama raised $73 million through a series A fundraiser, and the EVM-compatible blockchain Berachain raised $69 million.
Ethereum hosted over 50 VC-funded projects, more than any other blockchain. Solana was second with 40 VC-funded projects, and Crypto Koryo attributed its growth to memecoin ICOs.
Polygon and Bitcoin each hosted more than 10 VC-funded projects. While both projects dropped in relative position, Polygon “is losing market share” while Bitcoin “remains strong,” Crypto Koryo said.
Other findings elsewhere
Separate reports from Pitchbook suggested in February that VC funding began to recover slightly earlier. Pitchbook found that funding saw a 2.5% increase in Q4 2023 following a six-quarter decline; however, it also found that deal volumes fell by 2.4% over the quarter.
Low venture capital in other previous quarters was partially due to events that caused crypto prices to fall, such as the crypto liquidity crisis of 2022 and FTX’s collapse the same year.
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Author 
Mike Dalton
Before transitioning to crypto writing in 2018, Mike studied library and information sciences. Currently, he resides on Canada's West Coast.
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In this article
Ethereum is a decentralized, open-source blockchain platform that enables the creation of smart contracts and decentralized applications (DApps).
Solana
$256.453
Solana is a high-performance blockchain platform that utilizes a unique consensus algorithm called “Proof of History” to achieve fast transaction speeds and low fees.
Polygon
$0.57716
Polygon, a prominent layer 2 scaling solution on Ethereum, has emerged as a multifaceted and scalable platform, enhancing the Ethereum ecosystem’s capabilities.
Bitcoin
$98,410.43
Bitcoin, a decentralized currency that defies the sway of central banks or administrators, transacts electronically, circumventing intermediaries via a peer-to-peer network.
a16z
Andreessen Horowitz (known as “a16z”) is a venture capital firm in Silicon Valley specializing in investing in seed, start-ups, early, mid-stage, growth, and late stage.
OKX
OKX is a world-leading digital asset exchange, providing advanced financial services to global traders by using blockchain technology.
Multicoin Capital
Multicoin Capital is a thesis-driven investment firm that invests in cryptocurrencies, tokens, and blockchain companies reshaping trillion-dollar markets..
FTX
FTX is a defunct cryptocurrency exchange, currently in bankruptcy proceedings, that was founded by Sam Bankman-Fried and Zixiao “Gary” Wang in May 2019.