August 10, 2024
Venture Capital Investment Trends: Key investment sectors for the week included AI, gaming, Web3, and DeFi, with a particular focus on Solana and TON-based projects.
Here is the Weekly Wrap of VC Crypto Funding for the week ending August 10, 2024. Venture capital funding experienced a slight decline this week, with disclosed investments totaling $198 million. This represents a 10% decrease compared to the previous week. However, the number of funded projects increased by 30%, indicating a shift towards earlier-stage investments and a broader distribution of capital.
Category | Project | Money Raised this Round |
|---|---|---|
AI | 29,500,000 | |
17,500,000 | ||
5,000,000 | ||
6,000,000 | ||
1,000,000 | ||
Bitcoin | 70,000,000 | |
70,000,000 | ||
Data | 5,000,000 | |
5,000,000 | ||
DeFi | 12,500,000 | |
2,500,000 | ||
10,000,000 | ||
DePIN | 18,000,000 | |
18,000,000 | ||
FinTech | 1,100,000 | |
1,100,000 | ||
Gaming | 25,000,000 | |
7,500,000 | ||
1,500,000 | ||
9,000,000 | ||
6,000,000 | ||
1,000,000 | ||
Infrastructure | 3,000,000 | |
3,000,000 | ||
Investment | 2,000,000 | |
2,000,000 | ||
Payments | 3,000,000 | |
3,000,000 | ||
RWA | 6,000,000 | |
2,000,000 | ||
4,000,000 | ||
Security | 435,000 | |
435,000 | ||
Web3 | 22,500,000 | |
4,500,000 | ||
5,700,000 | ||
2,500,000 | ||
5,800,000 | ||
4,000,000 | ||
Grand Total | 198,035,000 |
AI
AI saw 4 projects receive $29.5m in funding this week across a broad range of problems they are trying to solve, from rewarding good driving, creative Web3 content, blockchain analytics and e-commerce solutions.
Aidatify, raised $17m led by SM Capital and is an on-chain AI aggregator that leverages proprietary AI model training technology to capture and analyze data within the blockchain sector. The platform's core feature is its powerful DEX Information AI Aggregation System, which processes and analyzes vast amounts of data daily, including smart contract addresses across multiple blockchains.
DeAgentAI, raised $6m from Web3.com Ventures and Vertex Capital for its core feature, the AI-Worker Layer, which combines specialized skills and AI technology to offer tailored solutions, such as financial forecasting and creative writing. The network aims to foster continuous improvement and innovation, making it a dynamic and adaptive ecosystem in the AI and blockchain sectors.
Bonumbit, raised $5m from AWS and specializes in integrating blockchain technology with e-commerce to enhance digital marketplaces. Their solutions include smart contracts, decentralized review systems, and AI-driven analytics for personalized shopping experiences.
LETSTOP, raised $1m for its platform that merges artificial intelligence and Web3 technologies to promote road safety. By providing real-time feedback to drivers, the app encourages safer driving behaviors and rewards users with cryptocurrency. LETSTOP's features include a non-custodial digital wallet, tokenized loyalty programs, and AI-driven analytics.
Gaming
Gaming saw 7 projects raise a disclosed $25m in VC funding this week.
Gaming | 25,000,000 | |
|---|---|---|
7,500,000 | ||
1,500,000 | ||
9,000,000 | ||
6,000,000 | ||
Televerse | 1,000,000 | |
UniWorlds |
Moonveil Entertainment, raised $9m led by The Spartan Group, gumi Cryptos Capital and Hashkey Capital and others to develop its web3 game studio dedicated to creating immersive gaming experiences by integrating cutting-edge technologies. Their mission is to blend casual flexibility with deep, authentic fun, offering a unique multi-game universe. the new funds will be used to advance industry standards through their self-developed products on a ZK-powered Layer 2 chain built with Polygon CDK. Moonveil's flagship games, AstrArk and Bushwhack, along with the $MORE token Play-to-AirDrop event, are set to launch soon. The funds will also support growth initiatives and experimental projects on the ZK-powered Layer 2 chain.
Pentagon Games, raised $6m from leading venture capital firms such as Animoca Brands, Binance Labs, Hyperedge, NFX, Polygon, Republic, Spartan, Tess Ventures, and Yield Guild Games. Pentagon Games, a zkEVM chain game publisher, is advancing the XR metaverse using deep learning and Web3 technologies. Their goal is to create immersive experiences that surpass conventional gaming by integrating AI, AR, VR, and ZK Proof EVM blockchain technology, providing players with a fully interactive environment.
Cartridge, a company specializing in infrastructure for provable onchain games and autonomous worlds, has secured $7.5 million in Series A funding. The funding round was spearheaded by BITKRAFT Ventures, with participation from StarkWare, Fabric Ventures, Dune Ventures, Primitive Ventures, and Ergodic Fund. Cartridge is a company dedicated to building, deploying, and scaling fully onchain games and autonomous worlds. They provide essential infrastructure and tools for developers, including engines for blockchain-based games, a managed infrastructure service called Slot, and a smart contract wallet named Controller. Slot allows developers to quickly deploy managed Katana sequencers and Torii indexers, facilitating rapid development and play testing. Cartridge’s innovative solutions aim to enhance the scalability and performance of onchain games, leveraging the Dojo framework to offer high-performance, low-latency, and cost-effective computation.
LYNC, the first mobile-centric roll-up on Movement Labs, has announced the successful raising of $1.5 million in pre-seed funding from a notable industry leaders including Movement Labs, Levitate Labs, Smape Capital, Amesten Capital, Aptos, 8186 Capital and LonghashX. The LYNC Rollup, powered by the Move stack, offers high throughput and ultra-low transaction costs, enabling developers to create large-scale mobile applications. With an end-to-end mobile infrastructure, developers can build Android, iOS, and Telegram mini apps without external dependencies, reducing development time and costs by 90%. LYNC is a blockchain company that focuses on simplifying the development and deployment of Web3 games. Their platform provides a GameFi infrastructure that allows game developers to build, test, and launch blockchain-based games quickly and efficiently. By offering tools and resources that streamline the development process, LYNC aims to foster innovation and growth in the blockchain gaming industry.
Web3
Web3 projects saw $22.5m raised by 5 projects.
Web3 | 22,500,000 | |
|---|---|---|
4,500,000 | ||
5,700,000 | ||
2,500,000 | ||
5,800,000 | ||
4,000,000 |
OnchainLabs, a Web3 tech firm based in Zurich, Switzerland, secured CHF 5 million (USD 5.8m) in seed funding. The round featured notable German investors, including serial entrepreneur Jochen Roeser, Adesso founder Prof. Dr. Volker Gruhn, and FC Barcelona football star Ilkay Gündogan. OnchainLabs provides a scalable Web3 SaaS solution aimed at making blockchain technology more accessible for brands and businesses. Their new Onchain Gateway wallet is a non-custodial digital wallet that simplifies digital asset management, catering to users new to blockchain. The company focuses on boosting user engagement with features like tokenized loyalty programs, exclusive access, and digital twins for physical assets.
Curio, a company specializing in web3 game development, secured $5.7 million in seed funding with Bain Capital Crypto and SevenX Ventures leading the round. OKX Ventures also contributed to this latest funding, raising Curio's total to $8.7 million. Curio is a gaming studio focused on developing foundational infrastructure for composable on-chain crypto games. Their goal is to enable new types of games where players can co-create governance structures and economic systems, fully unleashing their creativity.
Bubble Plan, raised $4.5m in Series A funding from investors including CV Labs, FLICKSHOT, gumi Cryptos Capital, Arriba Studio, Incubate Fund, Mechanism Capital, Round13 Capital, C² Ventures, IOBC Capital, and Gavin Birch. Bubble Plan is focused on creating a Web3-based GameFi blockchain game aggregation platform, offering a decentralized metaverse ecosystem and cross-chain integration for users worldwide.
TONX, a SuperApp platform layer for scaling Web3 applications, successfully completed a $4 million fundraising round. This funding, co-led by SNZ Ventures and Summer Ventures, with previous leadership from TON Ventures. TONX provides developers with tools like the TONX API, which supports the 950 million-user Web3 SuperApp ecosystem by offering a reliable and stable RPC DEVtool for building on the TON blockchain. Additionally, TONX has developed products such as TONX Node, which enhances node consensus security and allows users to earn POS rewards, and TONX Security, which helps identify vulnerabilities in smart contracts.
DePIN
DePIN | 18,000,000 | |
|---|---|---|
18,000,000 |
Andrena, the creator of a decentralized physical infrastructure network (DePIN) protocol on the Solana blockchain, has secured $18 million in funding. This round was led by Dragonfly and included investments from CMT Digital, Castle Island Ventures, Wintermute Ventures, 6th Man Ventures, and ParaFi.
Andrena is a company that provides high-speed internet services, focusing on affordability and accessibility. They use advanced radio technology to create wireless networks by deploying antennas across urban areas. This approach allows them to offer internet services to both residential and commercial customers, including underserved communities. Andrena partners with real estate owners and property managers to provide internet solutions that enhance connectivity for smart-home technology. Only available in selected states in the USA at the moment.
DeFI
DeFI saw $12.5m in disclosed raises by 3 projects.
The most notable was Vessel FInance, a ZK order book trading platform, raised $10 million in seed funding. Investors include Sequoia Capital, Scroll co-founders Sandy Peng and Ye Zhang, Avalanche Foundation, Algorand Foundation, IMO Ventures, Folius Ventures, Incuba Alpha, and several angel investors.
Vessel is a decentralized exchange (DEX) powered by Zero-Knowledge (ZK) technology, evolving into a comprehensive Layer 3 network for decentralized finance (DeFi). It combines the efficiency and user-friendliness of centralized exchanges (CEX) with the transparency and security of decentralized platforms. Vessel's core features include ZK-Proof circuits for order matching, verifiable AMM-embedded limit order books, and self-custody asset management. The platform aims to address liquidity fragmentation and support multi-chain expansion. Vessel also emphasizes asset security, transparent executions, and superior performance with zero gas fees, making it an accessible and reliable option for traders.
Stabble, Solana’s pioneering frictionless liquidity and trading layer, has secured $2.5 million through a combined pre-seed, seed, and private funding round. The funding, led by Masterblox and supported by Dynamic Labs, Founder Heads, Spicy Capital, DuckDAO, Marshland Capital, and ZEMU VC. Stabble is a protocol designed to revolutionize liquidity pools on the Solana blockchain by introducing protocol-managed and arbitrage pools. This innovation addresses critical issues in decentralized exchanges (DEXs) such as low capital efficiency, impermanent loss, and high price impacts for traders. Stabble’s unique approach includes features like smart order execution, smart liquidity routing, margin liquidity, and smart liquidity arbitrage, which collectively enhance capital efficiency and risk management. By providing a seamless trading experience with near-zero price impacts, Stabble aims to optimize returns for liquidity providers and ensure fair market prices for all tokens across the protocol.
Although undisclosed a notable investment was from Binance Labs, the venture capital and incubation division of Binance, making a substantial investment in Solayer, a prominent restaking network on Solana. This strategic investment aims to enhance on-chain decentralized applications (dApps) by improving network bandwidth and securing the Layer 1 (L1) network.
Conclusion
The venture capital landscape this week exhibited a trend towards broader investment distribution. While overall funding declined, the number of funded projects surged, indicating a focus on earlier-stage ventures. The AI, gaming, Web3, and DeFi sectors continued to dominate investor interest, with Solana and TON emerging as hotspots.
This shift suggests a growing appetite for risk and a search for high-growth opportunities across a wider range of companies. As the economic climate evolves, the venture capital industry will likely adapt to these new dynamics, shaping the trajectory of innovation in the coming months.
A central focus of investor activity in the cryptocurrency space is the evaluation of new crypto projects to invest in, particularly those with huge potential. This blog provides insight into what new ventures are benefiting from venture capital support (VC funding in crypto). These new crypto projects, funded by professional investors, can dictate the next narrative in crypto and the next big crypto movers.
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