Second quarter funding increased by 2.5% compared to the previous quarter. The number of deals fell 12.5% in the quarter.
Crypto fundraising rose slightly in the second quarter as startups raised $2.7 billion in 503 deals. A study of the pitchbook.
This was a 2.5% increase in invested capital, but a 12.5% decline in the number of deals when compared to the previous quarter, the study said.
The larger deal value and lower number indicate that deal sizes increased during the quarter.
With positive investor sentiment returning to crypto and barring any major market pullbacks, Pitchbook said it expects the volume and pace of investments to increase throughout the year.
As illustrated by the previous Pitchbook study News Crypto startups are on track to surpass $8.2 billion raised in 2023, and investors expect to pour more than $12 billion into industry projects this year.
Infrastructure startups continued to lead the way in the second quarter, with parallelization Layer 1 platform Monad ($225 million Series A), DeFi-specific Layer 1 platform BeChain ($100 million Series B), and Bitcoin restocking platform Babylon ($70 million early stage round).
Two other mega-rounds went to Farcaster, which raised a $150 million Series A round, and blockchain-based gaming platform Gentry, which raised a $140 million early-stage round.
Compared to full-year 2023, valuations increased for seed stage and early stage, but decreased for late stage.
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This suggests that investment rounds have become more competitive in earlier stages but less so in late stages, Pitchbook said.
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