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VC Firms Are Ditching Crypto Startups Faster Than You Can Say ‘Regulatory Headache

A  illustration of a giant dollar bill being pulled away from a crypto-themed cityscape, as investors turn their attention to safer alternatives like bitcoin ETFs in the background. A faint image of a 'dry powder' balloon can be seen rising above the chaos, symbolizing access to funding for later-stage companies.

VC firms are having a meltdown, crypto bros – your days of getting rich quick off early-stage startups might be numbered! According to Galaxy Research’s latest report, VC investment in crypto and blockchain startups plummeted by 20% in the third quarter of 2024. The culprit? Bitcoin ETFs that have been sucking up all the cash from smart investors who want a safer bet on cryptocurrency. Meanwhile, those early-stage startup founders are left holding baggies full of worthless promises – just like their entire business model.

Source: bitcoin.com

Venture capital (VC) investment in crypto and blockchain startups decreased in the third quarter of 2024. This decline is partly attributed to the growing popularity of bitcoin exchange-traded funds, which offer an alternative way for investors to gain exposure to the crypto sector. U.S.-based companies dominate VC deals in the crypto space, followed by Singapore, the United Kingdom, the UAE, and Switzerland. In the third quarter of 2024, venture capital […]

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