Crypto fundraising by VCs recovers in 2024

In recent years, fundraising for crypto has fluctuated. Now investment activity seems to be slowly increasing again.

From a report from PitchBook, a Morningstar firm, shows that fundraising for crypto-VC funds is down 88.9% in 2023 compared to 2022.

In 2022, fundraising reached a record $23.7 billion. The following year, the total was still at $2.6 billion.

In 2024, however, the average fund size increased 65.1% to $41.3 million. The size of medium-volume crypto-VC funds increased from $100 million to $500 million.

The growth of medium-sized funds is a good indicator of market development. They are large enough to support industry growth but avoid the challenges of mega funds.

Initial investments in the Tokenomics and governance sectors fell from about 58% in 2020 to 45.8% in 2024. However, a resurgence could stimulate the creation of new funds.

However, the time frame between raising capital and closing the funds has been extended from 2021 to 2024. This would reflect the new caution among investors.

Even with a market recovery, the crypto fundraising environment could remain difficult, according to the report. However, the fusion of crypto and artificial intelligence (AI) remains very interesting.