Last report of Crypto and Blockchain Venture Capital from Galaxy Digital has revealed an interesting trend recorded in the crypto market last year, particularly regarding the venture capital sector.
According to the report, as of the fourth quarter of 2024, almost half of all venture capital funding in the cryptocurrency and blockchain sector was directed to US-based startups.
Additionally, 46% of the total capital invested was directed to US-based startups. This figure far exceeds the share received by other jurisdictions, with Hong Kong coming in second at 16%, followed by Singapore and the United Kingdom.
Trends in early and late stage financing
Further analysis of the report reveals that the United States also leads in terms of deal volume, accounting for 36% of all venture capital deals during the quarter. Despite continued uncertainty and regulatory pressures in the United States, the country’s dominance in attracting capital and transaction activity was evident.
Alex Thorn, head of Galaxy research, in a job on
Meanwhile, venture capital activity in Q4 2024 revealed a continued appetite for early and late-stage digital currency startups. Around 60% of the capital raised went to early-stage companies, demonstrating continued interest in new and innovative blockchain projects.
The remaining 40% was directed to development-stage companies, thanks in part to large deals such as Cantor’s $600 million investment in Tether.
The data also showed that the median deal size increased over the year, reflecting a trend seen across the venture capital market as a whole. Although the number of transactions decreased slightly, the overall amount invested reached $3.5 billion for the quarter, a 46% quarter-over-quarter increase.
However, despite the increased funding levels, crypto VC funds themselves have faced challenges, with just $1 billion allocated to 20 new funds, close to the quarterly lows seen as early as the start of 2021.
The way forward for US crypto startups
As the United States cements its status as the top digital currency venture funding destination, industry observers are looking to 2025 for further growth.
Electing a more crypto-friendly administration could help address regulatory uncertainties, paving the way for even greater investment in the sector. Additionally, high activity in early-stage deals indicates that entrepreneurs with new ideas are still able to secure funding, ensuring a constant innovation pipeline.
Beyond the United States, the report highlighted key themes in the global crypto market, including the rise of Web3 projects, decentralized finance (DeFi), and blockchain infrastructure.
These sectors lead in terms of capital allocation, indicating where investors see the most promise for growth. As the market matures, these areas are expected to generate more capital flows and shape the future of the crypto ecosystem.
Featured image created with DALL-E, chart from TradingView
