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Crypto Venture Capital Investment Slumps 20% in Q3, Galaxy Digital Reports
Summary: Venture capital inflows into the cryptocurrency industry took a significant hit during the third quarter of 2024, according to a new report from Galaxy Digital. The report revealed that crypto startups secured $2.4 billion in venture capital funding through 478 transactions in Q3. This marks a 20% decline from the previous quarter and a substantial ...
Venture capital inflows into the cryptocurrency industry took a significant hit during the third quarter of 2024, according to a new report from Galaxy Digital.
The report revealed that crypto startups secured $2.4 billion in venture capital funding through 478 transactions in Q3. This marks a 20% decline from the previous quarter and a substantial drop from the record-breaking investments seen in 2021 and 2022.
Alex Thorn, head of research at Galaxy Digital, attributed the decline to several factors. Rising interest rates have made venture funds less attractive to institutional investors, while the availability of spot Bitcoin and Ethereum ETFs has provided alternative investment avenues. Additionally, a series of market crashes has dampened investor enthusiasm for the crypto industry.
The tightening of the crypto venture capital market has made it challenging for firms to raise large funds for new investment vehicles, further contributing to the slowdown in funding.
Tags: Galaxy Digital,venture capital
Link: Crypto Venture Capital Investment Slumps 20% in Q3, Galaxy Digital Reports [Copy]
