Crypto Startups Witness Surge in Venture Capital Investment

According to Bloomberg, the first quarter of 2024 saw a significant increase in venture capital (VC) investment in cryptocurrency startups. The investment reached $2.5 billion, marking a 32% rise from the previous quarter and maintaining a level similar to the same period in the previous year. This data was provided by PitchBook. Robert Le, a crypto analyst at PitchBook, noted that investors have started to spend again after a two-year period of capital conservation. The renewed interest in cryptocurrency was partially triggered by recent approvals. Anand Iyer, the managing general partner of the early-stage venture fund Canonical Crypto, has observed a surge in funding activity in recent months. He pointed out that some of the founders currently raising funds are not new to the industry, having previously built projects that did not succeed. Certain early features of cryptocurrency that were prominent during the last bull market have also made a comeback. Other venture capitalists are noticing signs of maturity in the industry. John Lo, a managing partner at Recharge Capital who oversees digital asset investing, was formerly part of the leadership at the decentralized crypto exchange Sushi. He noted that Bitcoin usage and adoption are at a scale never seen before, indicating growth in the industry. However, Lo also highlighted that there is still room for improvement. Recharge Capital is focusing on supporting startups that can enhance crypto infrastructure and make the industry more attractive to investors. According to Lo, the crypto industry is still in its early stages.