ChainCatcher news, according to Blockworks, PitchBook reveals in a new report that crypto venture capital spending will remain sluggish until the end of 2024. Specific data shows that the transaction value in Q4 2024 surged to $2.4 billion, a 13.6% increase from Q3, but the number of transactions decreased from 411 to 351.PitchBook's Robert Le pointed out: "Although there has been a return of funds, indicating ongoing support from investors for mature teams and differentiated technologies, the continuous decline in the number of transactions reflects an increased selectivity among investors, a trend that has been evident since Q3."Comparing the data from 2023 and 2024, the figures are quite similar. In 2023, the total amount of crypto venture capital reached $10.3 billion, involving 1,936 transactions; while last year, spending in this sector also amounted to $10 billion, covering 1,940 transactions.Additionally, the average transaction amount in the seed stage increased by 20%, jumping from $2.5 million to $3 million; early-stage financing grew by 26%, reaching $4.8 million. However, late-stage financing saw a slight decline, dropping from $6.4 million to $6.3 million. Le stated that this reflects "founders of more mature companies turning to smaller but strategically focused funding rounds, rather than pursuing the large financing rounds that were common in the past."

ChainCatcher news, according to DL News, a PitchBook research report shows that the number of cryptocurrency venture capital deals in 2024 is expected to decline by 14% year-on-year to 351 deals, while the total financing amount remains at $10 billion. The median valuation of early-stage projects has doubled year-on-year to $52 million, while late-stage projects account for only 5% of the total financing rounds.The report predicts that in 2025, there will be a wave of mergers and acquisitions in the fields of infrastructure providers, exchanges, and custodians. Venture capital is primarily focused on two major tracks: the first is the crypto AI sector, which has reached a market value of $55 billion, and analysts expect it to contribute up to $20 trillion in incremental value to the global economy by 2030; the second is the stablecoin market, which currently has a total size of $231 billion, with Tether's USDT and Circle's USDC both ranking among the top ten cryptocurrencies by market value, particularly Tether, which holds nearly 70% market share, achieving a profit of $13 billion in 2024.

ChainCatcher news, according to CoinDesk, a research report from JPMorgan indicates that crypto venture capital (VC) funding is expected to rise this year, as regulatory clarity and more crypto-friendly policies emerged during the tenure of U.S. President Donald Trump. However, due to increased competition from large financial institutions, high interest rates, and the rise of ETF products, funding levels may not reach the highs of previous years.The report notes that new cryptocurrency projects are avoiding selling large amounts of tokens to venture capital firms and are increasingly turning to community-driven platforms for fundraising.

ChainCatcher news, according to The Block, JPMorgan analysts expect that while cryptocurrency venture capital will see some growth in 2025, it will be difficult to reach the peak levels of 2021-2022.The report highlights key challenges including: increased competition from large financial institutions like BlackRock in areas such as stablecoins and tokenization; the rise of community-driven financing platforms like Echo leading to a reduction in large-scale token sales by project teams to VCs; a high interest rate environment diminishing the attractiveness of venture capital; and cryptocurrency ETFs diverting investor attention.Analysts believe that in the future, venture capital will focus more on projects with actual user adoption and long-term growth potential, rather than traditional short-term metrics.

ChainCatcher news, according to CoinDesk, Galaxy Digital stated in a research report on Wednesday that despite the recent rise in digital asset prices, cryptocurrency venture capital (VC) activity remains below previous bull market levels. In 2024, the total capital allocation of venture funds to the crypto industry is $11.5 billion, down from 2023. Galaxy pointed out that in the early rounds of bull markets in 2017 and 2021, VC activity was highly correlated with crypto asset prices, "but in the past two years, despite the rise in cryptocurrencies, VC activity has remained sluggish."There are several reasons for the stagnation in the venture capital market. Galaxy stated that these reasons include a "barbell market," where Bitcoin and its new spot ETF take center stage, while meme coins have "limited marginal net new activity." These meme coins struggle to secure funding and have a "questionable lifespan."The report noted that new projects at the intersection of artificial intelligence (AI) and cryptocurrency are gaining increasing attention, and upcoming regulatory changes may bring more opportunities for stablecoins, decentralized finance (DeFi), and tokenization. The report indicated that some large investors may gain exposure to cryptocurrencies through Bitcoin spot ETFs, "rather than turning to early VC investments."Galaxy stated that the U.S. completed the most transactions and invested the most funds in the fourth quarter. Galaxy added that early-stage deals accounted for 60% of the total investment in the fourth quarter, with stablecoin companies raising the most funds.The report also noted that in 2024, venture capitalists invested a total of $11.5 billion in startups focused on cryptocurrency and blockchain. These funds invested $3.5 billion in 416 deals in the fourth quarter, a quarter-over-quarter increase of 46%.

ChainCatcher news, according to a filing submitted to the U.S. Securities and Exchange Commission on Monday, Lattice, which has been investing in cryptocurrencies since 2021, is raising its third fund. The filing did not specify the size of the fund.In 2022, the company raised a $60 million fund, which is three times its initial capital.According to PitchBook data, the company has invested in 81 projects. Two of its most notable investments are the cryptocurrency bug bounty platform Immunefi and the core developer of the decentralized cloud storage network Filecoin, Protocol Labs.

ChainCatcher news, according to DL News, shows that Lattice, which has been investing in cryptocurrency since 2021, is raising its third fund, as indicated in a filing submitted to the U.S. Securities and Exchange Commission on Monday. The document did not specify the size of the fund.It is reported that in 2022, this venture capital firm specializing in early-stage cryptocurrency startups raised a $60 million fund, which is three times its initial capital.According to PitchBook data, the company has invested in 81 projects. Two of its most notable investments are the cryptocurrency bug bounty platform Immunefi and Protocol Labs, the core developer of the decentralized cloud storage network Filecoin.

ChainCatcher news, according to Fortune, early blockchain venture capital firm Portal Ventures is nearing the final close of its second fund, which has a target size of $75 million. Its founder and general partner Evan Fisher stated that the fund has been oversubscribed, reaching $90 million.According to documents submitted to the U.S. Securities and Exchange Commission (SEC) in August, the initial fund target was $70 million, but Portal later decided to raise the cap by $5 million.Fisher and another general partner, Catrina Wang, stated that Portal's investment strategy differs from other funds, focusing on early-stage "pre-seed" investments and has garnered support from top-tier investors. Portal's first fund was fully deployed in May of this year, and Fisher expects distributions to begin next year.

ChainCatcher news, IOBC Capital partner Alva Xu shared his insights on Token2049 on the X platform, noting several changes in the Crypto primary market from the perspective of an active Crypto LP:Some large funds from Europe and the United States are accelerating their fundraising efforts, and their commitment and focus indicate their determination to compete fiercely with Asian LPs. The conversation afterward was not exciting; AUM is the enemy of venture capital funds.European and American funds are squeezing the survival space of Asian funds, and LPs are becoming as valuable as quality developers, so IR will become increasingly important in the future.In today's market shift, some GPs are showcasing various strategies, such as buying OTC shares, pushing into the secondary market, and incubating projects. The core purpose is to prove they can outperform Bitcoin returns, and isn't the essence of venture capital to support great companies early on? Therefore, these flashy strategies might be less effective than returning to the original mission, which can resonate more with investors.In light of the current situation, this LP offered three suggestions for fund fundraising:Do not emphasize financial returns and DPI, as LPs can directly buy ETFs or hold BTC.Position yourself as an explorer in the industry; a strong desire for exploration and having your own worldview can better impress LPs, after all, investing in a company represents the kind of world you want to build.Conduct due diligence on each LP's strategic planning; understanding LPs' strategic investment layout is very important.

ChainCatcher news, according to PitchBook data, as of August, crypto venture capital firms have raised over $2.2 billion in new capital this year through closed-end funds. In just the past few weeks, at least six venture capital firms have collectively raised over $500 million. This includes ParaFi Capital's $120 million fund, Borderless Capital's $100 million fund, Hack VC's $77 million fund, and Robot Ventures' $75 million fund.Additionally, several funds are actively seeking new capital this year. According to Bloomberg, Dragonfly Capital is looking to raise $500 million for its new fund and has already raised half of that amount.

ChainCatcher news, according to Bloomberg, Alexander Lin and Carl Hua have founded a new venture capital fund called Reforge, aiming to raise $80 million, of which $25 million has been secured so far. Through Reforge, Lin hopes to find technologies that make it easier for founders and developers to adopt blockchain. He stated, "We believe that the current landscape of layer one blockchains does not meet the needs of the best consumer founders."In addition, Reforge co-founder Alexander Lin believes that the rapid launch of tokens driven by capital allocators seeking returns is a major reason for this. He also criticized the overheated investment phenomenon in cross-border startups between crypto and artificial intelligence, questioning the feasibility of decentralized computing networks meeting the power demands of AI tools.It is reported that Lin and Carl Hua both held senior positions at Shima Capital until leaving in January this year to establish Reforge.Previous news reported that the founder of crypto venture capital Shima Capital is suspected of misappropriating assets, and several company executives have resigned. Its founder Yida Gao created secret offshore entities and transferred assets belonging to his venture capital firm to companies registered in his own name, without the knowledge of other investors in those companies.

ChainCatcher news, Frank Chaparro, the Special Projects Director at The Block, and Laura Vidiella from MNNC Group published a joint opinion article calling on investors to focus on the long-term development of the crypto industry. Despite the poor performance of the crypto market in September 2024 and recent employment reports dampening market sentiment, the industry is still steadily developing from a macro perspective. Laura recently attended Korea Blockchain Week and hosted a panel discussion on the evolution of liquidity funds and venture capital funds.According to statistics, the number of funds focused on crypto investments worldwide has surged from about 50 in 2018 to over 1,150 currently. In comparison, there are about 4,000 registered hedge funds in the United States and approximately 30,000 globally. In terms of financing, the crypto industry raised over $72 billion from 2018 to 2023, while traditional venture capital in the U.S. raised over $600 billion during the same period.Although the approval of Bitcoin spot ETFs at the beginning of 2024 brought high expectations, this year is more likely to be a transitional period. The current cycle should not be simply compared to previous cycles, as the industry landscape has changed dramatically. If investors feel frustrated, they can take a break or look at industry development trends from a longer-term perspective, which may provide better insights.

ChainCatcher news, according to Bloomberg, British hedge fund billionaire Alan Howard's son Daniel Howard and partner Bhavin Vaid have announced the establishment of a crypto venture capital fund called Halo Capital. The fund has raised $25 million, aiming to bring a growth investor mindset to early-stage crypto projects.Halo Capital is headquartered in New York and has a broad investment scope, covering various fields from Bitcoin to decentralized artificial intelligence. The fund has invested in projects such as Bima Labs and Andrena, and has brought in about 20 partners to provide expert advice. Both founders come from the cryptocurrency-focused private equity firm 10T Holdings, and they began fundraising in March of this year, officially launching the fund's operations in June.

ChainCatcher message, ChainCatcher, in collaboration with the crypto media Blocktempo, has launched a survey on the research methods of crypto venture capital in the Asia-Pacific region.As the crypto industry enters a new development cycle, understanding the changes in venture capital research methods and standards helps to reduce information gaps, identify quality projects for the next cycle, and promote the effective allocation of market resources.Click the link to participate in this survey. The results will be published on over 10 authoritative media platforms, and completing the questionnaire takes only 10-15 minutes. Participants will have the chance to receive 100 Plus version APIs (3 months of usage) provided by RootData, available on a first-come, first-served basis.

ChainCatcher news, according to a new quarterly report from PitchBook, cryptocurrency financing has grown by 2.5%, reaching $2.7 billion. Despite the increase in amount, the number of transactions has decreased by 12.5%.PitchBook senior analyst Robert Le stated, "Investors are concentrating capital on a narrower range of opportunities, marking a leap towards quality. A few years ago, their investments were more diversified across various sectors. Overall financing in 2024 is expected to grow by 20% or more compared to last year, reaching between $12 billion and $14 billion this year, up from about $10 billion last year."

ChainCatcher news, Cinneamhain Ventures partner Adam Cochran posted on social media that the pace of venture capital investment in cryptocurrency has significantly slowed, with a subtle reason behind it. Most venture capital firms have limited partners (LPs), who are primarily interested in returns that exceed those of index funds. However, in the medium term, simply holding Bitcoin and Ethereum can "easily outperform" index funds in terms of risk-adjusted returns.This allows venture capitalists to take a wait-and-see approach towards Bitcoin and Ethereum, waiting for safer and more profitable opportunities, rather than taking on as much early risk in startups as they would in other industries. This is because there are no assets in other markets that provide holding yields like BTC or ETH.Adam Cochran stated that during the last crypto cycle (2020 to 2024), venture capital firms "seemed very active," hoping to get rich alongside participants by investing in applications that had "already exploded." However, several known narratives (NFTs, AMM forks, DeFi, L2s) have already reached their end, and it is currently unclear what the next steps should be.

ChainCatcher news, according to DL News*,* sources familiar with the investigation by the U.S. Securities and Exchange Commission revealed that the SEC has issued subpoenas to at least three cryptocurrency venture capital firms this year. DL News reviewed the first page of the subpoena. The page states: "SEC staff is investigating the above matters to determine whether there have been violations of federal securities laws."Insiders indicated that at least two other crypto VC firms received essentially the same document requests. According to the source, the subpoenas sent to these crypto VCs request all contracts related to token transactions.Reportedly, sources familiar with the investigation stated that the SEC is interested in whether these accredited investors are issuing unregistered securities to the broader retail market on behalf of token issuers. The individual added, "This would poison the initial offering," referring to what happens when investors are alleged to sell tokens on the public market.Additionally, a lawyer from a crypto VC firm not affected by the subpoenas stated, "This is an excessive investigation and extremely costly."

ChainCatcher news, according to informed sources, despite signs of recovery in the Web3 market, the European venture capital firm XAnge has quietly stopped raising funds for its first cryptocurrency venture capital fund.In 2022, the venture capital announced it was raising funds for its dedicated cryptocurrency fund, the Digital Ownership Fund, with a target size of 80 million euros, recruiting Luc Jodet, co-founder of the Paris Web3 luxury platform Arianee. However, now due to difficulties in securing enough supporters to complete the initial fundraising, its CEO Cyril Bertrand has stated that they will no longer raise funds for this cryptocurrency-specific fund.