November Fundraising: A Look at Crypto Fund Activity

Related: Trump’s Victory: The Impact on Crypto Explained

At the same time, meme coins entered a frenzy. For instance, PNUT, a token created to honor Peanut the Squirrel, reached a market cap of $2.4 billion at its peak, while CHILLGUY achieved a market cap of $775 million. 

Venture capital investments serve as a clear and significant indicator for the market, highlighting which sectors are likely to become key players in the future. While the debate continues about what comes first—the chicken or the egg (whether funds invest in promising projects or projects gain prominence due to fund attention)—one thing is certain: by channeling resources into specific niches, venture capital not only shapes trends but also defines the dominant directions within the industry.

Here’s how crypto funds allocated their investments last month:

• Blockchain Services — $1.1 billion
  

Comprehensive solutions using blockchain technology to deliver various services, such as decentralized applications (dApps), smart contracts, and payment systems.

• Blockchains — $365 million

Projects focused on developing their own blockchain networks, aiming to improve scalability, speed, and decentralization.

• Decentralized Finance (DeFi) — $85.4 million

Blockchain-based financial services that operate without intermediaries. These projects provide solutions for on-chain and cross-chain swaps, as well as staking and re-staking of cryptocurrencies.

• GameFi — $57.5 million

The integration of blockchain technology into the gaming industry, allowing users to earn cryptocurrencies or tokens through in-game processes. These projects blend gaming elements with decentralized finance.

• Centralized Finance (CeFi) — $50.5 million

Traditional financial services enhanced with blockchain and cryptocurrencies. These include crypto exchanges, lending platforms, deposits, and other related services.

• Stablecoins — $45 million

Cryptocurrencies pegged to the value of specific assets, usually fiat currencies, but also gold-backed stablecoins. Startups in this niche either develop new stablecoins or create solutions to support and enhance existing ones.

• Blockchain Infrastructure — $35 million

Projects providing the foundational tools and technologies for blockchain networks, including scalability solutions, security enhancements, consensus mechanisms, and data storage.

• Social Media Platforms — $11.7 million

Blockchain-based or decentralized social platforms where users can retain full control of their data, monetize content, and interact without centralized intermediaries.

In November, venture funding saw a noticeable shift toward blockchain projects and CeFi solutions.For comparison, in October 2024, VCs were more focused on social networks, blockchain infrastructure, and DeFi.

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Comparing the past two months reveals shifts in investor priorities, helping to identify which sectors are gaining traction and which are losing appeal. This insight enhances trend forecasting and allows for better evaluation of specific niches from an investment perspective.

In November 2024, venture capital funds participated in 119 funding rounds, compared to 108 in October. Despite the higher number of rounds in November, the total funding amount was slightly lower at $1.7 billion, compared to $2 billion the previous month.

The allocation of investments across rounds reflects varying strategies employed by funds:

• Focused Strategy
  

Participation in large-scale funding rounds reflects a strategic emphasis on specific projects or sectors. These investments target startups with significant potential and strong growth prospects.

• Diversification Strategy

Participation in smaller funding rounds indicates a diversification approach. Funds spread smaller investments across numerous projects, aiming to increase their chances of success by banking on at least 10% of these startups achieving significant growth.

The allocation reveals how funds balance between safety and potential returns: in the first scenario, VCs target startups with lower risks and smaller potential profits, while in the second, they focus on high-potential projects with greater returns but also higher risks.

Let’s compare the October and November metricsa.

In October, there were 3 rounds exceeding $50 million, compared to just 2 in November—a slight decrease.

The number of rounds in the $3–10 million range dropped from 37 to 26. This category is typically dominated by Tier 3 funds, which prefer spreading investments across numerous projects. At first glance, this decline might suggest reduced interest in this tactic. However, the reality is that these funds redirected capital toward sub-$1 million rounds, maintaining a risk redistribution strategy.

The average funding round size in November was $22.7 million, down from $29.5 million in October. This decrease is largely attributed to a rise in the number of sub-$1 million rounds, which increased from 3 to 11. This shift indicates a greater focus by funds on diversification strategies.

In November, the top five VC funds focused their investments on sectors such as artificial intelligence, restaking, and blockchain tool development. Leading funds—including Animoca Brands, Binance Labs, Hack VC, Polychain Capital, and a16z CSX—invested a combined $275.2 million across these and other niches.

The discrepancy can be attributed to a single, massive funding round by Mara Holdings, a mining company that raised $1 billion in a special financing round. This round significantly skews the overall data, which is why Mara Holdings does not appear among the top funds by number of rounds. More details about this funding round are provided below.

Animoca Brands distinguished itself with its activity in the artificial intelligence (AI) sector. In November, the fund participated in six funding rounds, including two undisclosed deals. Over the month, it invested a total of $53.7 million, with the largest share going to 0G Labs.

Binance Labs focused on the restaking sector, investing $30.5 million across five funding rounds, two of which were undisclosed. Its largest investment was in StakeStone, signaling the fund’s commitment to developing tools for optimizing crypto asset yields.

Hack VC centered its efforts on Layer 1 protocols, investing $88.1 million across five rounds in November. The most significant funding went to the AI-focused project 0G Labs.

Polychain Capital exhibited a strong focus on AI projects, participating in five funding rounds with a total investment of $77.5 million. Its largest investment went to Monkey Tilt.

a16z CSX concentrated on developer tools, completing five deals in November with total investments of $25.4 million. The largest allocation went to Vlayer.

The publicly traded American company Mara Holdings, specializing in cryptocurrency mining and blockchain technology development, has closed their convertible senior notes offering. These notes are set to mature on March 1, 2030. The majority of the funds raised will be allocated to purchasing Bitcoin.

Approximately $200 million (or 20% of the total amount) will be used to pay off upcoming debt obligations. The remaining funds will support strategic investments, operational growth, and the acquisition of BTC.

Although Mara Holdings did not receive investments from major crypto funds or specialized crypto players, its bonds have attracted attention from traditional investors. This indicates a growing interest in BTC, which could serve as an additional factor in boosting its value.

On November 13, 2024, Zero Gravity Labs (0G Labs) announced it had raised $290 million to develop the industry's first decentralized operating system based on artificial intelligence (dAIOS). 

The remaining $250 million was secured through a financing agreement that provides access to a liquid credit line and a commitment to purchase tokens. This credit line will allow the 0G Foundation—the organization managing the protocol—to obtain liquid digital assets held on exchanges at over-the-counter rates.

Michael Heinrich, co-founder and CEO of 0G Labs, noted that the successful fundraising could unlock powerful new opportunities for decentralized artificial intelligence.

On November 25, 2024, WLFI tokens valued at $30 million were purchased. According to Etherscan, the transaction originated from a wallet associated with the crypto exchange HTX. Sources from CoinDesk later confirmed that this address is linked to Justin Sun, the creator of the Tron blockchain.

Justin Sun himself later confirmed the investment.

Fundraising analysis provides critical insights into the projects capturing investor interest and the sectors attracting the most capital. This data helps identify emerging trends and enables timely responses to market changes.

Analysts should consider the amount of funds raised, the profiles of investors, the sectors of interest, and market dynamics. This analysis requires examining the structure of funding rounds as well as the operational models of projects that attract the attention of major VCs.

It's crucial to compare this data with previous periods, such as the prior month, quarter, or year. Flexibility and critical thinking are key to interpreting and leveraging these insights effectively.