Crypto Funding Landscape: A Week in Review (August 17, 2024)
The crypto funding landscape continued its upward trajectory in the week ending August 17, 2024. The weekly wrap shows a total of 28 projects securing a disclosed $248 million in funding, representing a 25% increase from the previous week. Some questionable funding raises were excluded due to the inability of being able to confirm the investor or the raise occurring via public means i.e. convertible notes.
Several notable trends emerged during this period. AI and Web3 projects were particularly prominent, with a focus on leveraging AI tools to enhance user experiences and facilitate ownership rights within Web3 ecosystems. Payment solutions, especially those centered around stablecoins, also attracted significant investment across both DeFi and Fintech sectors.
Bitcoin-related projects continued to receive substantial funding, with a particular emphasis on scalability, trading, and DeFi functionalities. Additionally, the TON and Berachain networks saw continued investment as projects sought to build on these specific platforms.
Security remains a top priority, as evidenced by the over $60 million raised by just two projects in this category. Blockchain security continues to be a consistent area of investment for a select group of projects.
While the Gaming sector experienced a relatively quieter week in terms of funding compared to previous periods, the overall crypto market demonstrated sustained growth and innovation.
Below is a tabled summary of all projects funded this week and we’ll also dive into the notable sectors this week.
Category | Project | Project Description | Money Raised this Round |
|---|---|---|---|
AI |
|
| 49,500,000 |
AI research tools | 3,500,000 | ||
AI Web3 | Undisclosed | ||
Ai-Driven DEPIN Rollapp | 9,000,000 | ||
Decentralized AI blockchain platform | 37,000,000 | ||
DeFi |
|
| 13,900,000 |
DeFI on Berachain | 1,500,000 | ||
Staking | 4,800,000 | ||
Bitcoin trading platform | 7,600,000 | ||
Boom | Payments access for unbanked | Unverifiable | |
FinTech |
|
| 48,000,000 |
Neobank Fiat & Crypto | Undisclosed | ||
USDT Money Transfer | 3,000,000 | ||
Connectivity Layer for Crypto Payments | Undisclosed | ||
Stablecoin-Powered Global Payments company | 15,000,000 | ||
Stablecoin Payments Infrastructure | 30,000,000 | ||
Gaming |
|
|
|
TON Gaming | Undisclosed | ||
Multichain mini-gaming ecosystem | Undisclosed | ||
Infrastructure |
|
| 20,000,000 |
Crypto Mining | Convertible Note | ||
DeFI Infrastructure | 5,000,000 | ||
Digital asset management platform tool | 10,000,000 | ||
Modular smart accounts infrastructure, | 5,000,000 | ||
Investment |
|
| 40,000,000 |
Supporting innovative projects on TON ecosystem | 40,000,000 | ||
Layer 2 |
|
| 11,000,000 |
Intent-centric L2 | 11,000,000 | ||
ETH layer-2 to enhance scaling dApps and games | Undisclosed | ||
Bitcoin Scaling | Undisclosed | ||
Security |
|
| 60,500,000 |
Cloud Security | 55,000,000 | ||
Open-source digital identity layer | 5,500,000 | ||
Web3 |
|
| 5,700,000 |
Web3 production | 600,000 | ||
Web3 Earning Platform | 100,000 | ||
AI Web3 property rights | 5,000,000 | ||
Grand Total |
|
| 248,600,000 |
AI & Web3
The combination of AI and Web3 projects was prominent this week, with four AI and three Web3 projects receiving a combined $55m in funding.
Category | Project | Project Description | Money Raised this Round |
|---|---|---|---|
AI |
|
| 49,500,000 |
AI research tools | 3,500,000 | ||
AI Web3 | undisclosed | ||
Ai-Driven DEPIN Rollapp | 9,000,000 | ||
Decentralized AI blockchain platform | 37,000,000 |
Category | Project | Project Description | Money Raised this Round |
|---|---|---|---|
Web3 |
|
| 5,700,000 |
Apas Port | Web3 production | 600,000 | |
Entrend | Web3 Earning Platform | 100,000 | |
AI Web3 property rights | 5,000,000 |
A standout was Sahara Labs, a crypto-AI startup developing the decentralized blockchain platform Sahara AI, secured $37 million in a strategic funding round led by Pantera Capital and Polychain Capital. With $6 million be raised six months earlier, it brings their total raise to $43 million. Other notable backers included Binance Labs, Samsung Next, Matrix Partners, Nomad Capital, SCB 10X, Canonical Capital, Mirana Ventures, Foresight Ventures, Dispersion Capital, and Tangent Ventures.
Sahara Labs is a decentralized AI network that aims to democratize the AI ecosystem by providing fair and universal access to global knowledge capital. Their platform, Sahara AI, integrates blockchain technology to ensure trustless, permissionless, and privacy-preserving interactions. It allows users to create autonomous AI agents, monetize their knowledge, and participate in a collaborative AI economy. One to watch, especially with the backers it has attracted and you can join their waitlist now to position yourself if they release a token. Go here https://saharalabs.ai/ to join their waitlist.
Rivalz Network is also one to watch with $9 million secured in recent funding rounds. Leading Investors Include Delphi Ventures, D1 Ventures, Gate.io, Magnus Capital, and Cogitent Ventures.
Rivalz Network is pioneering the future of AI data and intelligence with its AI Intel Layer, built on a decentralized infrastructure. The platform leverages a DePIN-based RollApp on Dymension, utilizing Celestia/EigenDA for secure and efficient data processing and storage. Rivalz aims to create a modular AI-app ecosystem, enabling the development of various AI applications. The network supports high-quality, secure, and accessible intel, facilitating the growth of autonomous systems and agentic economies. Users can earn $RIZ rewards by participating in the network, which emphasizes privacy and compliance while bridging the gap between DeFi and traditional finance.
MyShell, a decentralized AI ecosystem, also received undisclosed funding from Binance Labs. MyShell’s mission is to democratize the creation and distribution of AI-powered applications. The company is built on four key pillars: an open-source model layer, an AI creator platform, an AI app store, and an incentive network. These components are designed to create an equitable environment where creators can build, share, and own AI applications, with fair compensation integrated into the ecosystem.
Continuing on the ‘AI & ownership’ theme, KIP Protocol, a Web3 base layer focused on AI, raised $5 million in a private funding round led by Animoca Ventures and Tribe Capital, with additional investments from GBV Capital, DWF Ventures, and Morningstar Ventures. This new funding brings KIP Protocol’s total capital to $10 million. KIP Protocol is a decentralized AI framework designed to unlock digital property rights for knowledge assets in the AI-driven future. It provides a secure and efficient base layer for AI models, applications, and data owners to transact and monetize within the Web3 ecosystem.
On AI distribution, Crunch Lab secured $3.5 million in seed funding, with Multicoin Capital. CrunchDAO is a platform that connects data scientists and quantitative researchers with financial institutions and hedge funds. By leveraging collective intelligence and Web3 technology, CrunchDAO enables participants to develop and share machine learning models through a meritocratic, reward-driven tournament system. This approach allows researchers to maintain control over their models while contributing to predictive financial insights.
Fintech
As mentioned, Payment solutions, especially those centered around stablecoins, attracted significant investment across both DeFi and Fintech sectors. A strong message is that there is a lot of money to be made in making payments.
Category | Project | Project Description | Money Raised this Round |
|---|---|---|---|
FinTech |
|
| 48,000,000 |
Neobank Fiat & Crypto | Undisclosed | ||
USDT Money Transfer | 3,000,000 | ||
Connectivity Layer for Crypto Payments | Undisclosed | ||
Stablecoin-Powered Payments company | 15,000,000 | ||
Stablecoin Payments Infrastructure | 30,000,000 |
WSPN (Worldwide Stablecoin Payment Network), a prominent provider of advanced stablecoin infrastructure, secured an impressive US$30 million in Seed funding. This funding round was spearheaded by Folius Ventures and Foresight Venture, with significant contributions from notable investors such as Hash Global, Generative Ventures, RedPoint Capital and others.
WSPN leverages blockchain technology to facilitate seamless real-life payment scenarios. Their flagship product, WUSD, is a fiat-collateralized stablecoin pegged to the US Dollar, ensuring stability, transparency, and efficiency in transactions. WSPN aims to create a secure, efficient, and transparent digital payment ecosystem, supported by a robust network of over 30 exchanges, more than 10 major wallets, and numerous payment institutions and market makers.
Similarly, Sling Money, an app aimed at making global money transfers instant, easy, and low-cost, announced a $15 million Series A funding round led by Union Square Ventures, Ribbit Capital, and Slow Ventures. Sling leverages stablecoin technology and real-time payment systems to enable users to send money across 50+ countries seamlessly. Users can add money to their Sling Wallet from their bank account, debit card, or mobile money account, which is then converted into a US Dollar stablecoin. Transfers are performed using Pax Dollar (USDP).
DeFI
Bitcoin projects were prominent with funding this week, whether this was with trading, scaling or functionality.
Category | Project | Project Description | Money Raised this Round |
|---|---|---|---|
DeFi |
|
| 13,900,000 |
DeFI on Berachain | 1,500,000 | ||
Staking | 4,800,000 | ||
Bitcoin trading platform | 7,600,000 | ||
Boom | Payments access for unbanked | Unverifiable |
Satflow, a Bitcoin Trading Platform, raised $7.6 million in a Seed funding round led by Variant with participation from UTXO Management, Asymmetric, Memeland, Robot Ventures, Coinbase Ventures, CMS Holdings, Dan Held, Hash3, Bitcoin Frontier Fund and others. Current Bitcoin DEXs fall short for professional traders who require advanced order types, high-speed data, and liquidity pools. Traditional Web2 models impede progress due to conflicting interests. Satflow aims to address these challenges, elevate Bitcoin Layer 1 to institutional standards, and enhance decentralization.
Layer 2
Category | Project | Project Description | Money Raised this Round |
|---|---|---|---|
Layer 2 |
|
| 11,000,000 |
Intent-centric L2 | 11,000,000 | ||
ETH L2 to enhance scaling dApps and games | Undisclosed | ||
Bitcoin Scaling | Undisclosed |
Continuing on the Bitcoin theme, TuringBitChain (TBC), a native BVM utilizing the Unspent Transaction Output (UTXO) underlying model, completed its initial round of institutional financing. TBC is the creator of the Bitcoin Virtual Machine (BVM) and has implemented a scalable BTC layer2 solution based on BVM. Although an undisclosed amount was raised the round saw participation from ZC Capital, Stratified Capital, TradingEQ, HK HuaEr Group, and others. TBC state it has the advantages of sha256, POW and UTXO models, also having better scaling capabilities and data cutting capabilities. The platform aims to bridge the gap between decentralized finance (DeFi) and traditional finance (TradFi), providing a secure and efficient environment for various financial transactions and applications.
A bubbling concept on blockchain evolution are ‘intents’, with Essential, a developer of Ethereum's Layer 2 blockchain with a focus on "intent-centric" design, successfully raising $11 million in a Series A funding round led by Archetype, with participation from other investors such as IOSG Ventures, the Spartan Group, Mirana Ventures, Amber Group, Maven 11, and Big Brain Holdings.
Contrary to the conventional transaction-based model used by most blockchains, where users need to provide specific instructions, Essential uses an intent-based model where users simply state their desired result. As a Layer 2 solution, Essential processes user intents off-chain with the help of "specialized solvers", aiming to streamline the process. This method is designed to enhance the user experience, lessen the load on the main chain, and boost scalability.
Security
Security continues to be a top priority, as evidenced by the over $60 million raised by just two projects in this category. Blockchain security continues to be a consistent area of investment for a select group of projects.
Category | Project | Project Description | Money Raised this Round |
|---|---|---|---|
Security |
|
| 60,500,000 |
Cloud Security Blockchain | 55,000,000 | ||
Open-source digital identity layer | 5,500,000 |
Chaos Labs successfully raised $55 million in a Series A funding round, led by Haun Ventures, with contributions from existing investors like PayPal, Lightspeed, Galaxy Ventures, and Wintermute. Chaos Labs is a cloud platform focused on blockchain security. The company specializes in on-chain risk management, economic security, and incentive optimization. Its clients include well-known decentralized finance (DeFi) protocols such as Aave, GMX, and Jupiter. The company provides contextualized data for risk management and economic security, helping protocols identify vulnerabilities and prevent exploits through simulation-based assessments.
Holonym Foundation, focused on transforming digital identity security for the decentralized web, has successfully raised $5.5 million in seed funding. The round was led by Finality Capital and Paper Ventures, with significant contributions from Draper Dragon, Arrington Capital, Lightshift, Zero Knowledge Ventures, Zero DAO, and other notable investors. Holonym aims is to create a global open-source layer that provides citizens with basic access to digital identity using cryptographic proof of personhood.
Conclusion
The crypto funding landscape continues to evolve rapidly, with a strong emphasis on innovation and emerging technologies. AI and Web3 projects are gaining traction, demonstrating the potential for synergistic applications. Payment solutions, particularly those leveraging stablecoins, are also attracting significant investment. Bitcoin-related initiatives remain a core focus, with ongoing efforts to enhance scalability, trading, and DeFi functionalities. Security continues to be a critical concern, as evidenced by the consistent funding allocated to blockchain security projects. While the Gaming sector experienced a temporary lull in funding, the overall crypto market remains buoyant, reflecting growing investor confidence and the potential for future growth.
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.
Коментарі