Investments in crypto companies skyrocket, bull market started?

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When you look at the crypto industry, the first thing you probably look at is the prices of bitcoin (BTC) and other cryptocurrencies. But the sector is much broader than that, because the many companies in the sector all need money. In 2023, investors were not too willing to invest in these types of companies, but now they are catching up.

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Investments in crypto companies are growing

Data collected by The Block shows that venture capitalists invested more than $1.4 billion in March. That makes March the best month in this regard since September 2022 – that’s already 18 months ago. In that month, the industry raised more than $2 billion in capital.

Venture capitalists generally invest in very young projects, including in the form of seed funding. But last month, a significant portion of the money ended up in Series A deals. These are investments in companies that have been around for a while and are therefore seen as less risky.

Last month there were more than 20 deals of this type. In general, they also receive more money than projects that have just started, which partly explains the high amount. Yet the number of deals has also increased – by 64 percent compared to February.

According to The Block, it is difficult to keep track of which projects are being invested in and how much, but last month was the most accurate measurement yet. Next month’s amount could also be high, because it often takes a little longer before a financing deal is announced.

Crypto venture capitalists set milestone

These are also positive figures compared to 2023, when the market raked in $10.7 billion, or an average of more than $891 million per month. Last year the atmosphere was still somewhat depressed because the market was climbing out of a major bear market, which meant that the amount invested was lower than the year before.

Whether 2024 will be better than previous bull markets depends on a lot of factors, including whether we are in a stable bull market at all. In any case, crypto startups have already achieved a major milestone in February. The industry has already received $90 billion in February since The Block started measuring in 2017.


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The article is in Dutch

Tags: Investments crypto companies skyrocket bull market started

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