Executive Summary
The cryptocurrency startup ecosystem has shown significant evolution from 2019 to 2024, with notable trends across different funding stages. This analysis reveals distinct patterns in investment behavior and highlights the maturation of the crypto startup market.
Key Findings
Investment Trends by Stage
Seed Stage
- Average deal size increased from $3.7M in Q1 2019 to $6.8M in Q4 2024
- Peak average deal size of $7.9M in Q1 2022
- Demonstrated consistent deal flow with 56-278 deals per quarter
- Notable 2024 investments include Sentient ($85M), Tradedog Market Maker ($75M), and Arch ($75M)
Series A
- Average deal size grew from $9.3M in Q1 2019 to $13.6M in Q4 2024
- Highest average of $26.6M in Q2 2022
- Significant 2024 investments led by Monad Labs ($225M) and Farcaster ($150M)
Series B
- Highly volatile average deal sizes ranging from $6.4M to $114M
- Peak activity in 2021-2022 with deal counts reaching 29-32 per quarter
- Notable decline in deal volume post-2022
Series C & D
- Series C shows high volatility with peaks exceeding $250M in average deal size
- Series D rounds became sporadic after 2022, indicating market maturation
- Significant decrease in late-stage funding volume in 2023-2024
Market Evolution
- Early-stage funding (Seed and Series A) has remained relatively stable
- Later-stage funding has become more selective and less frequent
- Investment focus has shifted toward infrastructure and development tools in 2024
- Standard deviation in deal sizes indicates increasing market maturity and standardization
2024 Investment Focus
The largest early-stage rounds in 2024 went to:
- Infrastructure development (Monad Labs, Eclipse)
- Social platforms (Farcaster)
- Financial services (Figure Markets, Bridge)
- Development tools (Avail, Succinct)
| Total Investment in Seed, Series A/A+ | 2020 | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|---|
| NFTs | $56.6 | $1,090.5 | $1,789.8 | $629.8 | $506.3 |
| Decentralized Finance | $148.8 | $1,180.3 | $1,222.4 | $498.6 | $609.1 |
| Blockchain Gaming | $14.8 | $908.8 | $759.6 | $105.0 | $93.7 |
| DAOs | $8.5 | $89.3 | $369.2 | $42.8 | $86.6 |
| Blockchain Real Estate | $1.5 | $19.5 | $67.7 | $5.9 | $133.3 |
| Carbon Offset Trading Platforms | $6.7 | $8.5 | $46.1 | $5.6 | $8.3 |
| Digital Identity Passports | $5.1 | $7.6 | $51.7 | — | $5.0 |
| Trust & Safety Tech | — | — | — | $23.2 | $20.0 |
| Digital Twins | — | — | $3.0 | $2.2 | $5.7 |
* Sources available in the Octagon app
