Fueling Crypto Startups: VC Roundup and Alternative Funding Models

Venture capitalists are becoming increasingly involved in the crypto industry, providing liquidity for alternative funding methods for startups. Base-native lending platform Seamless has announced a co-sponsored initiative with layer-3 Degen Chain and semi-fungible token protocol Pandora, offering nearly $600,000 in grants to creators and developers building on Base. Degen Chain is focused on developers interested in building within Farcaster and Degen Chain, while Pandora is seeking creators interested in ERC-404 technology for their collections and memecoins. Applications for grants can be submitted through the Community Governance forum.

In addition to grants, a more welcoming funding environment is emerging for crypto startups. Investment in crypto firms rose by 38% in the first quarter of 2024, with the number of projects receiving funding increasing by 49%. In March alone, over $1.1 billion was invested in 180 crypto-related projects, with funds primarily directed towards infrastructure and decentralized finance projects.

Several startups have recently raised capital. AI data labeling startup Sapien secured a $5 million seed investment to expand its team and improve its frontend labeling infrastructure. Alpen Labs, a Bitcoin layer-2 developer, raised $10.6 million to enhance Bitcoin’s blockchain scalability using zero-knowledge proofs. HYCHAIN, a layer-2 decentralized network for gaming, raised over $8 million through a node sale, where participants earn rewards by operating software nodes. Web3Firewall, which provides risk and compliance solutions for blockchain and digital asset companies, raised $2.5 million in pre-seed funding.

These funding rounds showcase the increasing interest and support for innovative projects in the crypto space. Venture capitalists are providing the necessary capital for startups to develop and grow, fueling innovation in blockchain technology and decentralized applications.

3 thoughts on “Fueling Crypto Startups: VC Roundup and Alternative Funding Models

  1. So much money being poured into these projects, but what about real-world problems that need funding? Crypto seems like a bubble waiting to burst.

  2. How many of these startups will actually succeed? It feels like a game of chance and most people are destined to lose.

  3. These venture capitalists are just after a quick profit. They don’t care about the long-term success or sustainability of these projects.

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