Venture capital funding into blockchain-based startups reached $13.6 billion in 2024, according to data from the DeFi Report. This amount represents 4.9% of the total $279 billion in venture capital investments for the year.
The figures reflect a recovery from 2023 when crypto firms received $10.1 billion in VC funding. However, the industry is still far behind its 2021 peak, when crypto startups secured $32.4 billion.
Among 2024’s highlights, Monad Labs raised $225 million to build a layer-1 smart contract network after Berachain secured $100 million to support its modular blockchain development platform. In addition, the Bitcoin staking protocol Babylon raised $70 million, while the tokenization platform Securitize received $ 47 million from BlackRock.
Looking ahead, predictions from PitchBook suggest that 2025 will see a significant increase, with the crypto space projected to attract over $18 billion in capital.
Analysts from Galaxy Research also anticipate that the surge in VC activity will be driven by a combination of declining interest rates and greater regulatory clarity in the crypto space, which is expected to increase investor appetite for venture opportunities.
“Crypto VC fundraising has historically lagged broader crypto market trends, and there will be some amount of “catchup” over the next four quarters,” said Alex Thorn and Gabe Parker.
Galaxy forecasts a 50% year-over-year growth in VC investment in crypto startups in 2025. Source: Galaxy Research
This edition of Cointelegraph’s VC Roundup features some of the startups that raised capital in the last weeks of 2024.
Avalon Labs raises $10M in Series A round led by Framework Ventures
Bitcoin protocol Avalon Labs has raised $10 million in a Series A funding round led by Framework Ventures, with additional investment from firms including Kenetic Capital and SNZ Capital.
The funding will support Avalon’s expansion of its Bitcoin-backed DeFi ecosystem, which includes products like Bitcoin-backed lending, stablecoins, and savings accounts.
The startup is behind the USDa stablecoin, holding more than $466 million in total value locked. Avalon is said to have more than 20,000 Bitcoin (BTC) currently serviced and over 200,000 active users. The company plans to use the capital to scale its operations and increase its global presence.
Related: Tether makes first crypto VC fund investment into Arcanum Capital
Usual secures $10M from Binance Labs, Kraken Ventures
French startup Usual, a decentralized stablecoin issuer, has raised $10 million in Series A funding, led by Binance Labs and Kraken Ventures, with additional backing from firms like Coinbase Ventures and Ondo.
Usual offers a stablecoin reportedly backed by real-world assets (RWA), designed to maintain stability while minimizing banking risks. According to DefiLlama, its stablecoin Usual USD (USD0) holds over $1.7 billion in total value locked as of Dec. 31.
The startup operates in a community-driven model, where 90% of its native token is distributed to users, enabling profit-sharing and governance. The funding will support Usual’s expansion as it aims to move into traditional finance.
Blockchain data protocol Accountable raises $2.3M in seed funding
Crypto data startup Accountable has raised $2.3 million in seed funding, led by MitonC and Zee Prime Capital, with additional support from angel investors Darius Rugys and DCBuilder.
The platform, which is said to have facilitated $2 million in Bitcoin loans, offers a privacy-focused data solution for borrowers and lenders. It enables users to share real-time, verified data about assets, liabilities, and trading exposure while maintaining control over information sharing.
The platform serves institutional clients and seeks to become a go-to solution for both large market makers and retail participants in the crypto credit market. Its technology stack includes cryptographic tools and zero-knowledge proofs.
Binance Labs backs DEX Thena
Binance Labs has invested an undisclosed amount in Thena, a decentralized exchange (DEX) and liquidity protocol on the BNB Chain. Launched in January 2023, THENA offers spot and leverage trading with up to 60x leverage, utilizing the “ve(3,3)” tokenomics model to manage liquidity and reward participants. The model incentivizes long-term participation by allowing users to lock tokens in exchange for governance rights and rewards.
The funds raised will support the development of the protocol, with capital to be deployed on security and user acquisition. The protocol claims a total value locked of over $63 million as of Dec. 31, with plans to expand into crosschain operations and other DeFi services.
Related: Beam Foundation to debut $150M gaming fund in Abu Dhabi
