Certainly, the summer of 2024 has not been great for Bitcoin and cryptocurrencies, with the market stagnating or even slightly declining. According to a recent report by Galaxy Digital, a fairly marked lack of interest from venture capital (VC) investment funds affected the young asset class during the third quarter of this year.
VC investments down from previous quarter
Analysts at investment firm Galaxy Digital have just published a report on venture capital funds specializing in the crypto-asset sector. And the findings are, unsurprisingly, rather disappointing for cryptos over the last quarter.
Indeed, in Q3, VC funds invested a total of $2.4 billion in crypto projects, which represents a 20% decrease compared to the previous quarter. An activity of venture capitalists that is âwell below the levels of a bull runâ for the moment, according to experts.
Venture capitalists have âonlyâ bet $8 billion on crypto this year
Thus, the âintermediateâ projects between the king of cryptos and the questionable memecoins have not been able to find buyers among venture capital funds, particularly in the 3rd quarter of 2024.
This year, however, should manage to âmeet or slightly exceedâ VC investments from 2023, with a total of $8 billion invested in the cryptosphere for the first three quarters of 2024 so far.
For this 3rd quarter more specifically, it is the cryptocurrency projects in the broad category "Trading/Exchange/Investment/Lending" that have raised the most capital from VC funds. They represent more than 18.4% of the investments made during these 3 months, with a total of $462.3 million raised.
Unsurprisingly, US-based VC firms have invested the most in the sector, with 56% of the sums invested. Far behind on the podium are venture capital funds from the United Kingdom and Singapore, with 11% and 7% of the capital raised by crypto projects respectively (then Hong Kong with 4%).
