Investment activity and capital raising in the crypto market, after a gloomy year, have seen some bright spots in December. Not only has the number of successful fundraising projects increased, but the total value of the funding rounds has also reached a high level. However, there are also many differences compared to the previous period.
Here are the summaries and observations from BeInCrypto on the noteworthy points in the capital raising activities in December.
Fundraising amount reached $7.3 billion in Q4/2024
According to data from Cryptorank, in the last three months of the year, the amount of capital raised has skyrocketed, doubling or even tripling compared to the remaining months of the year.
- October: 115 funding rounds raised $2.46 billion.
- November: 139 funding rounds raised $1.76 billion.
- December: 147 funding rounds raised $3.06 billion.
Thus, in total in Q4, there were more than 400 funding rounds with a total amount raised reaching $7.3 billion. This is not only the quarter with the largest scale in terms of the number of projects and the amount of capital raised in 2024, but also exceeds the entire year of 2023. This may be a positive signal, indicating the positive expectations of Venture Capital (VC) funds for the market situation in the coming years.
Fundraising situation in the Crypto market in Q4. Source: CryptoRank.However, there is a difference in the fundraising activities at the end of the year, which is that the majority of the funds come from late-stage funding rounds and OTC.
"It's interesting to see the surge in crypto fundraising in Q4/2024, but most of it is driven by late-stage and OTC funding, fueling this growth. Is this a sign that early-stage projects are struggling to attract attention, or just a shift in how capital is flowing? Will this trend continue into 2025, or is it just a temporary spike? It's also curious to see this increase, as we're in a bull market where investors tend to hold capital to participate in the real market liquidity, rather than investing in the seed market." - Investor Levaix commented.
Which Crypto sectors attracted the most capital in Q4/2024?
Out of the nearly $7.3 billion that crypto projects raised in the final quarter of the year, the TOP 3 projects that raised the most capital accounted for 40%.
- Leading the way is Stripe's acquisition of the stablecoin platform Bridge for $1.1 billion. This transaction has become Stripe's largest investment to date.
- Second is MARA Holdings which has announced the successful completion of a $1 billion senior bond offering, with most of the funds to be used to purchase more Bitcoin.
- Third is Tether's $775 million investment in the video sharing platform Rumble.
It can be seen that although the amount of capital raised is higher, the largest transactions are not for Altcoin projects, but for stablecoins, companies related to Bitcoin, and investments directed outside the market.
However, 60% of the $7.3 billion is still allocated to the majority of projects building blockchain infrastructure, DeFi... reflecting the positive long-term vision of VCs on the potential of technology coins.
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