In the first quarter of 2024, there has been a significant increase in venture capital (VC) interest in the crypto industry. The total investment in Web3 firms has risen by 55%, and the number of Web3 VC investment deals has increased by 36% compared to the previous quarter, according to a report by QuickNode and Artemis. The report also highlights that AI and gaming-related Web3 protocols received the largest share of investment, indicating a positive shift in VC sentiment towards the web3 sector.
This renewed interest in Web3 has been further demonstrated by a $225 million funding round led by crypto-focused VC firm Paradigm into Monad Labs. Monad Labs is developing a new layer-1 blockchain network that is set to compete with Solana. There were two significant early-stage rounds in the quarter, including a $42 million Series B round for Berachain and a $35 million pre-seed round for 0G Labs, a blockchain for AI protocols.
Seed round deals experienced the most growth, with a 53% increase quarter-on-quarter, suggesting a growing interest in early-stage investments. Series A and seed funding rounds also saw a substantial increase in capital inflows compared to the previous quarter, indicating a renewed willingness from VCs to invest in the Web3 sector.
The period leading up to the 2024 Bitcoin halving saw several notable investment deals. Mezo, a Bitcoin layer-2 network, completed a $21 million Series A funding round led by Pantera Capital. Mezo enables investors to earn yield based on the duration they hold their tokens, functioning as a “Bitcoin Economic Layer.” Paradigm also made headlines with reports of negotiations to raise up to $850 million for a new fund, which would be the largest raise in the crypto industry since 2022.
These investment deals and the overall increase in VC interest suggest a resurgence of confidence in the crypto industry. After a period of uncertainty, VCs are now showing a renewed willingness to invest in Web3 projects, particularly in the areas of AI and gaming. With the Bitcoin halving on the horizon, it will be interesting to see how this renewed interest in the crypto industry continues to unfold.
Paradigm’s potential $850 million new fund is huge news! This could have a major impact on the crypto industry moving forward.
The rise in VC interest is a clear indication that the crypto industry is regaining momentum and attracting serious investors. Exciting times ahead!
The Bitcoin halving could be a game-changer, and it’ll be fascinating to see how this renewed interest in the crypto industry continues to unfold. 🪙📈
More VC interest means more speculation and more risks. 🎢 I’m not excited about this. 😣
The significant increase in capital inflows for Series A and seed funding rounds indicates a bright future for the crypto industry. Exciting times!
VC sentiment towards the web3 sector may be positive, but I’m not convinced. I’ve seen this story play out before.
VC investments in the crypto industry are just a recipe for disaster. I’m staying away from this.
The increase in seed round deals is a great sign for early-stage investments. The Web3 sector is gaining more attention from VCs.