- Financing in the second quarter increased by 2.5% compared to the previous quarter.
- The number of transactions fell by 12.5% during the quarter.
According to a study by PitchBook, fundraising in the crypto space increased slightly in the second quarter, as startups secured $2.7 billion in 503 deals.
This represents an increase in invested capital of 2.5 percent compared to the previous quarter, but the number of transactions fell by 12.5 percent, the study says.
The higher transaction value and lower number indicated that transaction size increased during the quarter, it said.
With positive investor sentiment toward cryptocurrencies returning and barring major market crashes, PitchBook expects the volume and pace of investment to continue to increase throughout the year.
An earlier PitchBook study, cited by DL News said crypto startups are on track to surpass 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 Q2, with the largest rounds coming from Layer-1 parallelization 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).
Two other mega rounds went to Farcaster, which raised $150 million in a Series A round, and blockchain-based gaming platform Zentry, which raised $140 million in an early-stage round.
Compared to the full year 2023, valuations increased in the seed and early stages but decreased in the late stages.
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This suggests that competition in investment rounds has become very fierce in the early stages, but is easing in the later stages, according to PitchBook.