Crypto startups to see $12 billion of venture capital funding in 2024

Crypto startups are set to raise $12 billion in venture capital investments this year, with the sector having recorded $5.5 billion in investments so far in 2024, according to DL News.

Last year, crypto startups raised $8.2 billion, but experts predict that 2024 will be a record year for venture funding for the crypto industry, thanks to the pro-crypto policies adopted by 2024 Republican presidential candidate and former president Donald Trump. Representatives of the Democratic Party have also made behind-the-scenes inroads into the crypto industry in recent weeks, fueling speculation that crypto could see more favorable policies in the coming years. Experts say that if regulations supporting the digital asset sector are put in place, innovation in the U.S. is likely to blossom, bringing new opportunities — and a wave of new capital.

Other positive factors include the possibility of the Federal Reserve lowering interest rates and the January launch of spot bitcoin exchange-traded funds (ETFs), which saw net inflows exceeding $17 billion. Ethereum ETFs have also entered the scene, recording over $4 billion in trading volume in their first week alone.

Crypto companies in North America secured $3.1 billion in total funding, representing more than half of all investment – ​​a 50% increase from last year. Investment in crypto companies in Asia and Europe totaled $1.2 billion. Elsewhere, crypto startups in Australia raised $40 million, while companies in South America raised $30 million.

“The United States dominates global innovation, is home to the largest capital markets, and makes it easier to invest in growing, new industries like crypto and AI,” Joshua de Vos, research leader at crypto data provider CCData, told DL News.