Venture Investors Increase Funding for Blockchain Startups

According to a study conducted by Pitchbook and published by Reuters, venture investors poured $2.4 billion into funding blockchain startups in the first quarter of this year. This figure demonstrates a steady growth that began in the fall of 2023.

One of the factors that positively influenced the investment attractiveness of the industry was the legalization of exchange-traded crypto funds (ETFs) that invest in Bitcoin. Moreover, investors anticipate a gradual easing of the monetary policy by the United States Federal Reserve, which also contributes to the influx of capital into the industry.

April also proved to be a successful month for the blockchain industry. According to RootData, venture funding for startups exceeded $1 billion last month. In total, 518 investment deals were concluded in the first quarter.

Compared to the previous quarter, investments in the blockchain industry grew by 40.3% in the reporting period. It is noteworthy that such growth is occurring against the backdrop of a global decline in venture capital investments to a five-year low, as noted by analysts.

The largest volume of investments in January-March was directed towards startups engaged in the development of blockchain infrastructure. This indicates that investors see great potential in projects that contribute to the expansion and strengthening of the industry’s foundation.

Overall, the growth in funding for blockchain startups demonstrates the increasing trust of investors in distributed ledger technology and its potential in various areas of application. It is expected that this trend will continue in the near future, as more companies and investors recognize the benefits of blockchain and seek to establish their niche in this rapidly developing industry.