Fundraising Overview

Venture Investing: Dead or Alive?

2024 exhibited modest venture deployment in the crypto space, with capital allocation of ~$23.65 billion across 3,562 deals, representing a notable compression from the previous cycle's peak.

While drawing cyclical parallels to 2020 suggests an imminent expansion in private market activity—driven by improving macro conditions and regulatory clarity—the market witnessed a paradigm shift in capital deployment vectors.

The emergence of fair launch mechanisms and renaissance in liquid markets have fundamentally altered the risk-reward dynamics, challenging traditional venture allocation frameworks.

Looking ahead to 2025, we anticipate sophisticated allocators pivoting toward liquid strategies, catalyzed by potential regulatory arbitrage opportunities and the prospective implementation of comprehensive digital asset securities frameworks under the incoming administration…. However, only time will tell.

AI Emerges

AI deployment captured a modest $1.4 billion across 479 fundraising rounds in 2H 2024, representing just 6% of the aggregate venture landscape. However, early 2025 indicators suggest an inflection point in capital allocation vectors.

At $109 million deployed through mid-January, the sector is demonstrating unprecedented momentum—projecting to a 39.60% CAGR on an annualized basis. This acceleration, if sustained, positions AI fundraising to potentially reach $2.65 billion by year-end.

While this base case projection signals a decisive shift in institutional capital flows toward AI-native protocols and infrastructure, historical venture cycle analysis suggests potential for material outperformance.

Drawing parallels to previous cycle inflection points, we anticipate AI allocations to command an outsized share of total venture deployment, potentially establishing the sector as the dominant capital formation vector in the industry.

Let’s take a closer look into 2024 AI venture 👇