Venture capitalists are returning to invest in crypto start-ups. This considerable figure was achieved with a total of 603 operations.
According to data compiled by Galaxy Research, $2.5 billion has been injected into the blockchain sector.
After a winter that lasted more than nine months, venture capitalists are returning to investing in crypto start-ups. The considerable figure was achieved with a total of 603 operations; which represents an increase of almost 70% compared to the previous quarter and in monetary terms there is a +29% compared to Q4 2023. However, the confirmation and consolidation of a recovering trend will only be noticed as the quarters go by.
But what influenced the recovery in investments? The introduction of Bitcoin ETFs has certainly played its part, in addition to macroeconomic factors such as the static nature of interest rates, as well as the development of technological innovations such as retaking and Leyer-2 solutions on BTC.
An interesting fact emerges when examining the relationship between the value of Bitcoin and investments in the cryptocurrency sector by venture capital firms: it does not follow a directly proportional trend. Indeed, over the last year, this correlation seems to have weakened. As reported by Galaxy Research, although the value of Bitcoin has grown significantly, investments by venture capital firms remained rather static until the sudden increase recorded in the first quarter of 2024.
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However, it should be noted that these investment levels are not yet comparable to those observed when the value of Bitcoin first surpassed the $60,000 mark, in the period between 2021 and 2022.
But who is this money intended for? 80% of the invested capital was allocated to early-stage start-ups. On the other hand, therefore, already-developed companies had more difficulty in raising money. The sector that attracted the most investments was infrastructure, which reaches 24% of total capital, which also includes EigenLayer’s $100 million financing round. The Web3 and trading sectors follow with 21% and 17% of the total capital absorbed.
Geographically, the focus of investments continues to remain the United States. In the quarter, Stars and Stripes start-ups represented almost 40% of operations and 43% of capital. Singapore, the United Kingdom, Switzerland, and Hong Kong follow with 10.8% of transactions, 10.2%, 3.5%, and 3.2% respectively.
Original article published on Money.it Italy 2024-05-12 07:00:00. Original title: Nel Q1 del 2024 ripartono gli investimenti nelle start-up crypto
