Crypto venture capital activity in the third quarter of 2024 saw a significant decline, with VCs investing $2.4 billion, a 20% drop compared to the previous quarter. The industry is on track to receive only slightly more funding in 2024 compared to the previous year. High interest rates, the emergence of spot crypto ETFs, and the aftermath of the industry's collapses in 2022 have deterred allocators from investing in the sector. Early-stage firms received the majority of the investment, with 85% of capital going to such startups. The US led in terms of investment, accounting for 56% of all capital, while the UK and Singapore followed. Despite the decline in funding, crypto projects combining with artificial intelligence saw five times more investment than the previous quarter. Fundraising for crypto venture funds has also been challenging, with only $140 million raised across eight new funds, making 2024 the weakest year for crypto VC fundraising since 2020.



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