- Second-quarter funding increased 2.5% from previous quarter.
- Number of deals declined 12.5% in quarter.
Crypto fundraising increased slightly in the second quarter as startups secured $2.7 billion across 503 deals, according to a PitchBook study.
This was a 2.5% increase in invested capital, but a 12.5% decline in the number of deals when compared with the previous quarter, the study noted.
The bigger deal value and lower number indicate deal sizes increased during the quarter, it said.
With positive investor sentiment returning to crypto and barring any major market downturns, PitchBook said it expects the volume and pace of investments to continue increasing throughout the year.
An earlier PitchBook study cited by DL News said crypto startups are on track to outstrip the $8.2 billion raised in 2023, as investors are expected to pour more than $12 billion into industry projects this year.
Infrastructure startups continued to lead the way in the second quarter, with the biggest rounds raised by parallelisation layer 1 platform Monad ($225 million Series A), DeFi-specific layer 1 platform Berachain ($100 million Series B), and Bitcoin restaking platform Babylon ($70 million early-stage round).
Two other mega-rounds went to Farcaster, which raised a $150 million Series A round, and to blockchain-based gaming platform Zentry, which raised a $140 million early-stage round.
Compared with full-year 2023, valuations were up for the seed stage and the early stage, yet were down for the late stage.
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This indicates that investment rounds have become highly competitive at the earlier stages but less so at the late stage, PitchBook said.