Crypto VC Landscape in 2024: A Shift Towards Quality and Profitability

Introduction

Imagine you’re a venture capitalist (VC) in the crypto space, sipping your coffee, and flipping through your portfolio. You notice something unusual: the number of deals you’ve made has dropped significantly, but the value of each deal has skyrocketed. Welcome to the world of crypto VC in 2024.

The Decline in Deal Count: A Blip or a Trend?

In 2024, the crypto VC landscape witnessed a 46% drop in deal count from Q1 to Q4 [1]. Galaxy reported a 13% decrease in deal count in Q4 2024 compared to the previous quarter [2]. This decline might seem alarming, but it’s not a sign of waning interest. Instead, it’s a testament to increased investor selectivity.

The Rise of High-Value Projects

Despite the drop in deal count, total crypto VC funding remained stable at $10 billion [6]. This indicates that while fewer deals were made, the ones that were, were of higher value. Deloitte reported a material correction in median check size for both late-stage VC and venture-growth deals since 2021 [4].

Later Stage Deals: The New Focus

VCs have shifted their focus to later stage deals and companies with clear paths to profitability. KPMG predicts this trend will continue, with VCs focusing on fewer, higher-quality bets [10]. This is a stark contrast to the early days of crypto, when VCs were more willing to take risks on early-stage projects.

The Bear Market’s Impact

The bear market has significantly impacted the crypto space, with the U.S. dollar value of VC firms’ token holdings decreasing substantially [9]. This has made VCs more cautious, leading to a focus on later stage deals and companies with clear paths to profitability.

The Future of Crypto VC Deals

The future of crypto VC deals is expected to be characterized by fewer deals, bigger bets, and more mergers. dlnews.com reports that crypto venture capital funds are eyeing a wave of mergers in 2025 as investors focus on fewer, higher-quality bets [8].

Conclusion: A Maturing Market

The decline in crypto VC deal count in 2024 is not a cause for concern, but rather a sign of a maturing market. The focus on later stage deals and companies with clear paths to profitability is a reflection of increased investor selectivity and a move towards high-value projects. As the crypto space continues to evolve, VCs will become even more discerning in their investments.

Sources

[1] Crypto VC deal count dropped 46 percent in 2024
[2] Crypto & Blockchain Venture Capital Q4 2024
[3] ‘Rebound’ in crypto venture capital suggests focus on ‘quality over quantity’
[4] Revolutionizing fintech: A pivotal moment for digital assets
[5] Crypto venture deals drop 60% since October as investors turn more selective
[6] Crypto VC Deals Collapse 46%, But Valuations Explode
[7] Crypto Venture Capital Deals Decline in 2024 Amid Investor Selectivity
[8] Crypto VCs position for fewer deals, bigger bets, and more mergers
[9] Crypto VCs face a harsh reality in the bear market
[10] [Venture Pulse Q4 2024](https://assets.kpmg.com/content/dam/kpmgsites/xx/pdf/2025/01/venture-pulse-q4-2024