The analyst measured growth across two distinct metrics. VCs invested nearly $2 billion in crypto projects, marking an increase of 38% from Q4 2023. VCs also invested in 250 crypto projects, representing an increase of 49% from the previous quarter.
The results are some of the best since investments peaked sevenfold at $14 billion in Q4 2021.
Crypto Koryo noted the latest growth “could be the start of a new wave,” as it concludes a two-year downtrend followed the earlier peak in investments.
Investment focus varied
Several significant VC firms made the list of top 50 investors, with a16z, OKX Ventures, and Multicoin Capital and Protocol Labs ranking as the top three entities by amount invested.
Certain products raised more than others. The crypto exchange Hashkey raised $100 million through a series A fundraiser. The restaking platform EigenLayer raised $100 million through a private fundraiser. The blockchain and encryption firm Zama raised $73 million through a series A fundraiser, and the EVM-compatible blockchain Berachain raised $69 million.
Ethereum hosted over 50 VC-funded projects, more than any other blockchain. Solana was second with 40 VC-funded projects, and Crypto Koryo attributed its growth to memecoin ICOs.
Polygon and Bitcoin each hosted more than 10 VC-funded projects. While both projects dropped in relative position, Polygon “is losing market share” while Bitcoin “remains strong,” Crypto Koryo said.
Other findings elsewhere
Separate reports from Pitchbook suggested in February that VC funding began to recover slightly earlier. Pitchbook found that funding saw a 2.5% increase in Q4 2023 following a six-quarter decline; however, it also found that deal volumes fell by 2.4% over the quarter.
Low venture capital in other previous quarters was partially due to events that caused crypto prices to fall, such as the crypto liquidity crisis of 2022 and FTX’s collapse the same year.
