As a seasoned crypto investor with a decade of experience under my belt, I find these recent venture capital trends incredibly encouraging. The resurgence of funding into blockchain-based startups is a testament to the maturing of this industry and its increasing potential. Having witnessed the ups and downs of the market since the early days, I can say that we are finally seeing a more stable, sustainable growth path.
The figures from 2024, with $13.6 billion in VC investments, show a recovery from the previous year and a significant step towards regaining the 2021 peak. It’s like watching a phoenix rise from the ashes, only this time, it’s our beloved crypto world.
The investments into promising startups like Avalon Labs, Usual, Accountable, and Thena are all indicative of a vibrant ecosystem that is attracting more and more capital. I find it amusing how the tables have turned – just a few years ago, we were the wild west, now we’re the darling of the venture capital world!
As for the predictions for 2025, with over $18 billion in capital expected to flow into the crypto space, I can’t help but feel like we’ve struck gold… or should I say, Bitcoin! With greater regulatory clarity and declining interest rates driving this surge, it seems we’re in for a wild ride.
And as always, remember: The best way to predict the future is to create it. So let’s keep building, investing, and innovating in this exciting world of ours. After all, who knows? Maybe one day our grandchildren will be reading about the “good old days” of 2024 and laughing at us for being the pioneers!
Joke: They say there are two types of people in crypto – those who can calculate their average cost basis and those who can’t. But I always thought there was a third type – those who don’t care because they’re just here for the Lambo!
2024 saw a whopping $13.6 billion in venture capital funding poured into startups using blockchain technology, as reported by the DeFi Report. This figure accounts for approximately 4.9% of the overall $279 billion invested in venture capital deals that year.
2023 marks a point of recovery for crypto firms as they garnered $10.1 billion in venture capital investment. Yet, it’s important to note that the industry is yet to catch up with its 2021 high, having raised an impressive $32.4 billion in funding for startups at that time.
As an analyst, I’d like to highlight some significant fundraisings that caught my attention in 2024. Firstly, Monad Labs managed to secure a substantial $225 million investment for constructing a layer-1 smart contract network. Following closely, Berachain garnered $100 million to strengthen its modular blockchain development platform.
In addition, the Bitcoin staking protocol Babylon successfully raised an impressive $70 million, while Securitize, a tokenization platform, received a $47 million investment from BlackRock. These fundraisings underscore the ongoing interest and growth in the blockchain and cryptocurrency sectors.
Moving forward, my analysis aligns with PitchBook’s projections, indicating a substantial surge in the cryptocurrency sector by 2025. I foresee this dynamic market drawing in an estimated $18 billion in investments.
Experts at Galaxy Research predict that a rise in Venture Capital (VC) investments will primarily result from two factors: firstly, a decrease in interest rates, and secondly, clearer regulations in the cryptocurrency sector, which should stimulate investors’ interest in venture prospects.
According to Alex Thorn and Gabe Parker, the pace of venture capital fundraising in the cryptocurrency sector has typically trailed behind the broader trends of the crypto market. They predict that during the following 12 months, there might be a period where the crypto VC fundraising catches up with these market trends.
In this week’s CryptoMoon Venture Capital Summary, we highlight a selection of companies that secured funding during the final fortnight of 2024.
Avalon Labs raises $10M in Series A round led by Framework Ventures
Avalon Labs, the team behind the Bitcoin protocol, secured $10 million during their Series A funding round, which was headed by Framework Ventures. Furthermore, they received investments from other firms like Kenetic Capital and SNZ Capital as well.
The financing will aid Avalon in extending their Decentralized Finance (DeFi) infrastructure backed by Bitcoin, encompassing services such as Bitcoin-based loans, digital currencies with stability, and Bitcoin savings accounts.
Usual secures $10M from Binance Labs, Kraken Ventures
Decentralized stablecoin provider Usual, based in France, has successfully secured $10 million in their Series A financing round. This significant investment was headed by Binance Labs and Kraken Ventures, and received further support from companies such as Coinbase Ventures and Ondo.
Typically, Usual provides a digital currency known as a stablecoin, which is said to be supported by tangible assets from the real world. This design aims for stability while reducing potential banking risks. As per DefiLlama, the stablecoin issued by Usual, called Usual Dollar (USD0), has approximately $1.7 billion in total value locked within it as of December 31.
In this user-oriented approach, the startup distributes a large portion (90%) of its internal currency or token to its users. This setup allows for both revenue-sharing and decision-making control. The funds raised are intended to fuel Usual’s growth as it ventures into more established financial sectors.
Blockchain data protocol Accountable raises $2.3M in seed funding
As a researcher, I am thrilled to share that our crypto data startup, Accountable, has successfully secured $2.3 million in seed funding. This round was spearheaded by MitonC and Zee Prime Capital, with further backing from angel investors Darius Rugys and DCBuilder.
As an analyst, I can express that the platform under discussion is renowned for its role in facilitating approximately $2 million worth of Bitcoin loans. This platform prioritizes privacy by providing a data solution tailored to both borrowers and lenders. It empowers users to effortlessly share up-to-date, verified data about their assets, liabilities, and trading exposure while ensuring they retain control over the information they disclose.
The system caters to institutional customers and aspires to be a preferred choice for both significant market intermediaries and individual traders within the digital credit market. It employs advanced technologies such as encryption methods and zero-knowledge verifications.
Binance Labs backs DEX Thena
As an analyst, I’m excited to share that Binance Labs, the venture capital arm of the world-renowned cryptocurrency exchange Binance, has recently invested in Thena, a decentralized exchange (DEX) and liquidity protocol on the BNB Chain. This innovative platform, Thena, was unveiled in January 2023, offering spot and leverage trading with an impressive maximum leverage of up to 60x.
The unique selling point of Thena is its adoption of the “ve(3,3)” tokenomics model, designed to manage liquidity and reward participants. This model encourages long-term participation by allowing users to lock their tokens in exchange for governance rights and rewards. Essentially, the more a user locks, the greater their influence over Thena’s decision-making process and the more they stand to earn from the platform’s success.
This strategic move by Binance Labs underscores their commitment to fostering innovative projects on the BNB Chain, contributing to its growth and diversification.
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2024-12-31 20:56