Research Summary
The report provides an overview of the Crypto VC investment landscape in May 2024, highlighting a decrease in the number of projects and total fundraising amount compared to the previous month. It also details the top 10 fundraising rounds, led by Farcaster and Bitdeer, each raising $150 million.
Key Takeaways
Overall Investment Landscape
- Monthly Decrease in Crypto VC Investments: The report indicates a 8.9% decrease in publicly disclosed Crypto VC investment projects in May 2024 compared to April 2024. However, there was a 43% increase year-on-year.
- Decrease in Total Fundraising Amount: The total fundraising amount in May was $990 million, a decrease of 3.9% month-on-month from $1.03 billion in April 2024. Despite this, there was a 26.9% increase year-on-year.
Top Fundraising Rounds
- Farcaster and Bitdeer Lead Fundraising: Social protocol Farcaster and Bitdeer each completed a $150 million financing round. Farcaster’s round was led by Paradigm, while Bitdeer signed a subscription agreement with Tether.
- Significant Investment in Bitcoin Ecosystem: Bitcoin staking-focused startup Babylon raised $70 million in its latest financing round led by Paradigm, marking the largest investment in the Bitcoin ecosystem recently.
- Humanity Protocol Valued at $1 Billion: Humanity Protocol completed a new $30 million financing round at a valuation of $1 billion. The round was led by Kingsway Capital.
Sector Breakdown
- DeFi Dominates Sector Investments: DeFi accounted for approximately 23.5% of the investment projects, followed by NFT/GameFi at 17.6%, and L1/L2 at 11.8%.
- AI Accounts for Smallest Share: AI projects accounted for the smallest share of investments at 3.3%.
Actionable Insights
- Monitor DeFi and NFT/GameFi Sectors: Given their significant share of investment projects, these sectors could present potential growth opportunities. Stakeholders should keep a close eye on developments in these areas.
- Assess Potential of Bitcoin Ecosystem: The substantial investment in Babylon, a Bitcoin staking-focused startup, suggests growing interest in the Bitcoin ecosystem. Stakeholders should assess the potential of this sector.
- Consider the Impact of High-Value Fundraising Rounds: The high-value fundraising rounds completed by Farcaster, Bitdeer, and Humanity Protocol could have significant impacts on their respective sectors. Stakeholders should consider the potential implications of these investments.
