Crypto Fundraising Surges in November
In November, the crypto fundraising market experienced a significant increase compared to previous months. Bitcoin miners emerged as the leaders, accounting for 90% of the deals, surpassing exchanges and payments projects.
According to research conducted by market intelligence platform Messari, Bitcoin miners Northern Data and Phoenix Group raised more than half of the total funds accumulated in the crypto venture capital market.
Bitcoin Miners Dominate Funding
Last month, the crypto market witnessed 98 deals worth $1.75 billion, a substantial jump from October’s $750 million. The top ten deals alone accounted for over $1.4 billion and involved various crypto projects.
Leading the list was Northern Data, raising more than $600 million in a debt financing round, followed by Phoenix Group with $370 million in an initial public offering (IPO). Blockchain.com secured third place with $110 million in a Series E funding round, while Fnality obtained $95 million in a Series B round.
Other notable deals included investments in Bitfarms, Ritual, and Blast. Bitfarms received significant funding as a Bitcoin miner, while Ritual is an AI infrastructure startup. Blast, an Ethereum-based blockchain, secured $20 million in funding led by Paradigm.
Optimism and Increased Deal Sizes
It is important to note that without the substantial funds raised by Northern Data and Phoenix Group, the total amount accumulated in November would have been $750 million, which has been the average monthly funding since August.
However, the average deal size increased by 50%, reaching $7.5 million compared to October’s $5 million.
Messari researcher Kel believes that the significant funding received by Bitcoin miners indicates optimism among venture capitalists, suggesting that they anticipate higher Bitcoin prices, particularly with the upcoming halving event. Despite concerns about reduced block rewards, venture capitalists remain positive.
Although cryptocurrencies have experienced a recent rally, this surge has not translated into private market flows. Kel suggests that investors may be in a ramping-up stage that has yet to result in announced deals.
Hot Take: Crypto Fundraising Soars with Bitcoin Miners Taking the Lead
In November, the crypto fundraising market witnessed a remarkable surge, with Bitcoin miners leading the way by accounting for 90% of the deals. Notable companies like Northern Data and Phoenix Group raised substantial amounts of funds, contributing to the overall growth of the crypto venture capital market. The increase in average deal sizes and the optimism among venture capitalists indicate a positive outlook for Bitcoin prices. Despite concerns about reduced block rewards, investors remain focused on the potential benefits. However, the recent rally in cryptocurrencies has not yet translated into private market flows, suggesting that investors may be in a ramping-up stage. Overall, November proved to be an exciting month for crypto fundraising, showcasing the growing interest and confidence in the industry.
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