Crypto Investments in Q3 2024

During the third quarter of 2024, crypto venture capitalists invested $2.4 billion, marking a 20% decrease compared to the previous quarter. This decline is indicative of a broader hesitance in the venture capital community, particularly among institutional allocators who have remained cautious following numerous collapses in 2022.

Key Highlights:

• Investment Trend: The industry is on track to match or fall short of the funding received in 2023.
• Market Influences: Factors such as high interest rates and the rising popularity of spot Bitcoin and Ethereum ETFs have diverted attention from traditional venture investments in crypto.

"Allocator interest in crypto VC and venture capital more broadly is down from prior years," said Alex Thorn from Galaxy Digital, highlighting the struggle to attract significant funding.
*Translated: "El interés de los asignadores en el capital de riesgo de criptomonedas y el capital de riesgo en general ha disminuido en comparación con años anteriores."

• Capital Allocation: Most funding went to early-stage firms, receiving 85% of total investments.

Reports indicate that despite the dip, certain sectors, including crypto trading platforms and AI-integrated projects, showed some resilience, reflecting a shifting dynamic within the venture landscape.