Crypto VCs Raise Over $2.2 Billion in New Capital This Year

Crypto venture capitalists have been successful in raising over $2.2 billion in new capital through closed funds in 2024, as reported by PitchBook data. In recent weeks, several VCs have collectively raised more than $500 million, with notable examples including ParaFi Capital, Borderless Capital, Hack VC, and Robot Ventures. The trend indicates a positive outlook on early-stage startups, showcasing optimism for new innovations. One standout fund is Borderless Capital’s $100 million DePIN Fund III, focusing on Decentralized Physical Infrastructure Networks (DePINs) that utilize blockchain technology and token incentives to create connectivity networks. The growth in the DePIN sector, as seen through increased funding rounds and project ambitions, suggests a maturing industry with strong fundamentals and diverse applications.

Unique Resilience of DePIN Projects

Alvaro Gracia, a partner at Borderless Capital, highlighted the resilience of DePIN projects in bear markets, noting that their value is derived from sources outside the crypto sector. Projects like Helium and GEODNET exemplify this resilience, with revenue streams that are independent of crypto market fluctuations. Gracia emphasized the tokenomics design of DePIN projects, which enables revenue transfer to token value through mechanisms like buy-backs. This unique feature, coupled with the sector’s ability to maintain fundamentals during market downturns, positions DePIN projects as promising investments.