December Funding Reaches Q4 High
- December saw the highest VC funding levels in Q4, following a strong recovery in October and November.
- VC funding expanded by 72% compared to November, driven by large-scale private deals.
- December funding surpassed $3 billion, a significant increase from December 2023’s $1 billion.
Seed Round Confidence Remains
- While over 37.9% of deals remained undisclosed, approximately 30% of investors continued to support seed rounds, indicating confidence in the crypto market’s potential.
- Monthly funding averaged around $1 billion throughout the year, with a low of $640.75 million in February and a high in December.
Late-Stage Projects Dominate
- December saw a record high in VC funding for the year, with a shift towards advanced-stage projects surpassing seed round investments.
- AI projects attracted over 26% of all deals, ranging from rented GPUs to chatbots.
ICO/IDO Activity Remains Moderate
- ICO and IDO activities remained moderate in December, raising $68.22 million, slightly lower than November.
Notable Deals and Trends
Large-Scale Deals: The $250 million private late-stage round for Avalanche was a significant deal in December.
Undisclosed OTC Rounds: Numerous undisclosed OTC deals contributed to the year-end funding frenzy.
Tether and Rumble Deal: The $775 million deal between Tether and Rumble, while significant, may not fully reflect overall VC sentiment.
US Dominates VC Funding
The majority of VC deals involved US startups and were funded by US-based funds.
The US election results, pointing towards a crypto-friendly administration, likely contributed to the accelerated funding in November and December.
Other active VC regions include Singapore, the UK, China, and the UAE.
Germany led among EU countries with over $101 million in deals.
Angel Investor Focus
Angel investors also favored AI projects, followed by DeFi, infrastructure, DEX, and NFTs.
There is continued competition among Layer-1 and Layer-2 infrastructures, attracting investment from some angel investors.
Disclaimer: This information is for general knowledge and informational purposes only and does not constitute financial advice.
