Crypto Venture Capital Market Remained Difficult in 2024, Galaxy Digital Says

Prices Indices CoinDesk 20 Index Bitcoin Offerings Ethereum Offerings Trend Indicators Indices Crypto Sectors News Markets Finance Policy Tech Learn Opinion Consensus Magazine Video Podcasts CoinDesk Podcast Network Markets Daily Gen C The Protocol Unchained with Laura Shin The Mining Pod Newsletters The Node First Mover State of Crypto Crypto Long & Short The Protocol Crypto for Advisors Sponsored Thought Leadership Press Release CoinW Abra Bitget Gate.US Matrixport MEXC NEAR Phemex SocialGood Tron Advertise Consensus Consensus 2025 Hong Kong Consensus 2025 Toronto Webinars Log In / Create Account Prices Indices Consensus Sponsored Sign Up BTC 102,814.47 +3.47% ETH 3,407.21 +1.63% XRP 3.25 -2.54% USDT 0.99990185 +0.01% SOL 219.99 +2.32% BNB 724.97 +1.62% DOGE 0.41053468 +6.73% USDC 0.99996060 +0.01% ADA 1.11 +1.04% TRX 0.24541631 +2.17% AVAX 41.05 +1.76% LINK 23.98 +4.77% SUI 4.91 +3.77% XLM 0.48138833 -5.85% SHIB 0.0₄24232 +6.94% HBAR 0.36880072 +2.64% TON 5.60 +0.59% WBTC 102,444.83 +3.47% LTC 135.54 +11.81% BCH 482.90 +4.58% Markets Share Share this article Copy link X icon X (Twitter) LinkedIn Facebook Email Crypto Venture Capital Market Remained Difficult in 2024, Galaxy Digital Says VC activity has been subdued for the last two years despite the rally in digital assets, the report said. By Will Canny | Edited by Oliver Knight Jan 17, 2025, 12:55 p.m. UTC Galaxy Digital CEO Mike Novogratz (CoinDesk) What to know : Venture capital activity has remained depressed despite the rally in digital assets, Galaxy said. The report said that some large investors were using spot bitcoin ETFs to gain exposure to the crypto market rather than early-stage VC investing. Galaxy noted that VC funds invested $3.5 billion across 416 deals in Q4. Crypto venture capital (VC) activity remains below the levels seen in previous bull markets despite the recent rally in digital assets, Galaxy Digital (GLXY) said in research report on Wednesday. Total capital allocated to VC funds in 2024 was $11.5 billion, less than in 2023. Galaxy noted that VC activity was highly correlated to crypto asset prices in previous bull runs in 2017 and 2021, "but for the last two years activity has remained depressed while cryptos have rallied." Stagnation in the venture capital market is due to a number of reasons. These include a "barbell market" where bitcoin (BTC) and its new spot exchange-traded funds (ETFs) have taken centre stage, with "marginal net new activity" from memecoins, Galaxy said. These memecoins are hard to fund and have "questionable longevity." There is growing enthusiasm for new projects at the intersection of artificial intelligence (AI) and crypto, the report said, and forthcoming regulatory changes may result in more opportunities in stablecoins , decentralized finance (DeFi) and tokenization . Some large investors may be gaining exposure to crypto via spot bitcoin ETFs "rather than turning to early-stage VC investing," the report noted. The U.S. was responsible for the most deals completed in Q4 and the most capital invested, Galaxy said. Early-stage deals accounted for 60% of total investment in the fourth quarter, and stablecoin companies raised the most money, Galaxy added. Venture capitalists put $11.5 billion in total into crypto and blockchain focused startups in 2024. These funds invested $3.5 billion, a 46% rise quarter-on-quarter, across 416 deals in Q4, the report added. Read more: Crypto VC Market 'Tepid' as Q3 Investments Declined 20%, Says Galaxy Digital Crypto venture capital Galaxy Digital ETFs Analysts Will Canny Will Canny is an experienced market reporter with a demonstrated history of working in the financial services industry. He's now covering the crypto beat as a finance reporter at CoinDesk. He owns more than $1,000 of SOL. X icon X icon ABOUT About Us Masthead Careers CoinDesk News Research CONTACT Contact Us Accessibility Advertise Sitemap POLICIES Ethics Privacy Terms of Use Cookie Consent Do Not Sell My Info DISCLOSURE Please note that our privacy policy , terms of use , cookies , and do not sell my personal information have been updated. CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies . CoinDesk has adopted a set of principles aimed at ensuring the integrity, editorial independence and freedom from bias of its publications. CoinDesk is part of the Bullish group, which owns and invests in digital asset businesses and digital assets. CoinDesk employees, including journalists, may receive Bullish group equity-based compensation. Bullish was incubated by technology investor Block.one. © 2024 CoinDesk Markets Finance Tech Policy Price Latest Crypto news Advertise About Masthead News Analysis Consensus Magazine Consensus Magazine Focus Web3 Opinion Learn Press Release Sponsored Content Newsletters Coindesk News Markets Finance Tech Policy Price Latest Crypto news Advertise About Masthead News Analysis Consensus Magazine Consensus Magazine Focus Web3 Opinion Learn Press Release Sponsored Content Newsletters Coindesk News Markets Finance Tech Policy Price Latest Crypto news Advertise About Masthead News Analysis Consensus Magazine Consensus Magazine Focus Web3 Opinion Learn Press Release Sponsored Content Newsletters Coindesk News Markets Finance Tech Policy Price Latest Crypto news Advertise About Masthead News Analysis Consensus Magazine Consensus Magazine Focus Web3 Opinion Learn Press Release Sponsored Content Newsletters Coindesk News Markets Finance Tech Policy Price Latest Crypto news Advertise About Masthead News Analysis Consensus Magazine Consensus Magazine Focus Web3 Opinion Learn Press Release Sponsored Content Newsletters Coindesk News Markets Finance Tech Policy Price Latest Crypto news Advertise About Masthead News Analysis Consensus Magazine Consensus Magazine Focus Web3 Opinion Learn Press Release Sponsored Content Newsletters Coindesk News Markets Finance Tech Policy Price Latest Crypto news Advertise About Masthead News Analysis Consensus Magazine Consensus Magazine Focus Web3 Opinion Learn Press Release Sponsored Content Newsletters Coindesk News