As 2024 concludes, Bestla VC reflects on a year marked by significant developments in both venture capital and the cryptocurrency markets. This period has been characterized by notable achievements, challenges, and transformative trends that have reshaped the investment landscape.
Venture Capital Landscape
The venture capital (VC) sector experienced a notable contraction in funding activities throughout 2024. Global VC funding rounds saw a decline in both deal value and volume, with Q3 deal value amounting to $61.32 billion—a 7.8% decrease from the same period in 2023.
This downturn is attributed to factors such as persistent inflation, rising interest rates, and a cautious approach from limited partners (LPs) due to limited distributions.
Despite the overall slowdown, specific sectors demonstrated resilience. Artificial Intelligence (AI) and mobility sectors, for instance, attracted significant investments, with mega funding rounds propelling a modest 2% quarter-over-quarter global growth in venture capital during Q3.
In the U.S., seven of the top ten global deals of $1 billion or more were recorded, underscoring the country’s continued dominance in the VC arena.
Cryptocurrency Market Dynamics
The cryptocurrency market witnessed substantial growth in 2024, solidifying its position within the mainstream financial ecosystem. Bitcoin, the flagship cryptocurrency, surpassed the $100,000 threshold, marking a significant milestone and reflecting increased institutional adoption.
This surge was further bolstered by the approval of Bitcoin spot ETFs, which attracted billions in institutional inflows, signaling enhanced trust in crypto-backed financial products.
Ethereum also experienced a remarkable year, with a notable increase in long-term holders (HODLers), indicating growing confidence in its long-term value proposition.
Additionally, the overall crypto market achieved its second-best year ever, with trading volumes hitting $18.4 trillion, a testament to the sector’s robust growth and increasing investor interest.
Looking Ahead
As we transition into 2025, the venture capital landscape is expected to seek a new equilibrium. While challenges persist, particularly concerning fundraising and deal-making, sectors such as AI and mobility are poised to continue attracting significant investments.
In the cryptocurrency domain, the anticipated supportive regulatory environment under President-elect Donald Trump’s administration is likely to further propel the market, with expectations of Bitcoin potentially reaching $200,000 by the end of 2025.
Bestla VC remains committed to navigating these dynamic markets, leveraging insights and strategic foresight to identify and support ventures that drive transformative change. We extend our gratitude to our partners and stakeholders for their continued trust and collaboration throughout this transformative year.
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Disclaimer: This recap is for informational purposes only and does not constitute financial advice. Investors should conduct their own research before making any investment decisions.
Key Developments in Venture Capital and Cryptocurrency Markets in 2024
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