In Q4, there was a shift in crypto funding with larger rounds contributing to the overall funding pool for the year. December saw the highest levels of VC funding for Q4, driven by late-stage and undisclosed rounds. Seed rounds still accounted for around 30% of investments, indicating confidence in the potential of the crypto market. The year ended on a volatile note, with funding ranging from a minimum of $640.75M to December's record-breaking $3B. VC funds set a yearly record in December, targeting advanced-stage projects. AI projects received a significant portion of funding, and VC-backed deals expanded despite the popularity of meme tokens. Investment volume increased by over 72% compared to the previous month. The biggest deal in December was a $250M late-stage round for Avalanche. Most VC deals were tied to US startups, and the US election result played a role in the accelerated funding. Other active VC markets included Singapore, the UK, China, and the UAE. The US Securities and Exchange Commission's regulatory oversight in previous years discouraged investment in crypto startups. Angel investors showed interest in AI projects, DeFi, infrastructure, DEX, and NFT projects. L1 and L2 infrastructure also attracted investment due to competition between chains.



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