🌎 Crypto VC Investments Surge in 2024, Median Fund Size Up 65%

Venture capitalists are significantly increasing their investments in crypto-related funds this year compared to last year. According to the latest report from PitchBook, published on Sept. 5, the median fund size has risen by 65.1%, reaching $41.3 million in 2024.

These days, it’s common for crypto-savvy investors to assemble midsized crypto VC funds, ranging from $100 million to $500 million. PitchBook Senior Analyst Robert Le notes, “These funds are large enough to support industry growth but small enough to avoid the deployment challenges faced by megafunds, making them crucial to the current ecosystem.”

However, the increased availability of funds doesn’t mean venture capitalists are not cautious. Le points out that the time between fundraises and the duration to close funds have both lengthened over the past three years. “This trend signals a challenging fundraising environment ahead as LPs become more selective and risk-averse in the wake of recent market downturns,” he adds.

In the second quarter of this year, data shows VCs invested just under $3.2 billion into crypto and blockchain-focused companies, marking a 28% quarter-over-quarter increase. However, this investment was spread across 577 deals, a 4% decrease quarter-over-quarter. In the previous three-month period, VC investment in crypto and blockchain startups increased by 29% compared to the prior quarter, totaling about $2.49 billion across 603 deals.

This week, we spotlight some of the startups that have recently made headlines. According to a crypto fundraising tracker, these companies raised close to $70 million in disclosed VC funding between Sept. 1 and Sept. 7.

Balance – $30 Million

Gaming platform E-PAL introduced Balance, a new AI-powered blockchain experience platform, following two successful funding rounds led by Andreessen Horowitz (a16z) and Galaxy Interactive. Other contributors include Animoca Brands, K5, CLF Partners, MK Capital, Heights Fund, AMBER, MarbleX, Mantra, Tuna, Aptos Labs, IOBC, Leland Ventures, Halon, Uphonest, Taisu Ventures, Gate Labs, DWF Ventures, BING, and WAGMI. The proceeds will go toward developing the Balance infrastructure, aiming to create an “open, inclusive, and equitable Web3 ecosystem.”

Hypernative – $16 Million

Hypernative, known for developing an early-detection web3 security solution, raised $16 million to accelerate the adoption of its AI-powered security products. The Series A round was led by Quantstamp and included investors such as Bloccelerate VC, Boldstart Ventures, Borderless Capital, CMT Digital, IBI Tech Fund, Knollwood Investment Advisory, Re7 Capital, and notable angels. This brings Hypernative’s total raised to $27 million, following a previous $9 million funding round from Boldstart and IBI.

PuffPaw – $6 Million

PuffPaw, a blockchain-based e-cigarette project, secured $6 million in seed funding led by Lemniscap Ventures. The project aims to help users quit smoking by recording their smoking habits and rewarding them with tokens.

TrendX – $5 Million

TrendX successfully closed its Series A funding round, raising $5 million. Investors include AHZ, Promontory, Coinstash, Frontier Research, Coresky, Tido Capital, and Bullperks. The startup previously raised $1 million in seed money, bringing the total to $6 million.

IDA – $6 Million

IDA, a Hong Kong-based digital asset company, secured $6 million in a seed funding round led by CMCC Global under its Titan Fund and Hashed. The company aims to launch its first fiat-referenced stablecoin called HKDA, designed to be regulated in Hong Kong. Other investors include Hack VC, Anagram, GSR, Protagonist, Brinc, Chorus One, Kenetic, SNZ, and Yolo Investments. Raj Gokal, co-founder of Solana, is also a backer.

CryptoHunter World – $2.8 Million

CryptoHunter World, a hybrid gaming service, completed a $2.8 million private sale round. Supported by leading venture capital firms such as IOST, HG Ventures, Mindfulness Capital, Bigcandle Capital, Web3Wave, and Layer-OTC, this fundraising will help bring the blockchain-based collectible role-playing game into the web 3.0 space.

Additional Funding Rounds

Blabla: Closed a seed round with participation from Nebula Investment, the European Blockchain Association (BCAEU), and Hopechain.
Dropnest and Cycle Network: Both startups are backed by Manta Network.
Vanilla Finance: Secured seed funds from YTWO, UOB Venture, Pluto Capital, Paper Ventures, Openspace, Notcoin, HTX Ventures Logo, Catizen, and ABCDE.
Kroma: Completed a Series A funding round with support from Asia Advisors Korea, Gate Ventures, ICC Venture, Planetarium, Presto, RFD Capital, Taisu Ventures, The Spartan Group, Waterdrip Capital, and other partners.
Pencils Protocol: Raised an undisclosed amount of seed funding from Bing Ventures and at least three other investors.