Venture capitalists are raising more money for crypto funds this year than during last year’s dismal decline.
According to the latest a report According to a PitchBook report published on September 5, the average fund size is expected to rise 65.1% to $41.3 million in 2024.
These days, it’s common for experienced crypto investors to set up mid-sized crypto venture capital funds — with coffers ranging from $100 million to $500 million. “These funds are large enough to support industry growth but small enough to avoid the deployment challenges of mega-funds, making them essential to the current ecosystem,” wrote Robert Lee, a senior analyst at PitchBook.
But just because money is available doesn’t mean VCs aren’t cautious. According to Lee, the time between raising money and closing funds has gotten longer over the past three years.
“This trend points to a challenging fundraising environment ahead as limited investors become more selective and risk averse in the wake of recent market declines,” Lee adds.
It is worth noting that in the second quarter of this year, Galaxy data recorded Offers Venture capital firms invested nearly $3.2 billion (up 28% QoQ) in crypto and blockchain-focused companies. But that money was allocated to 577 deals — down 4% QoQ. In the prior three-month period, venture capital investment in crypto and blockchain startups increased 29% QoQ, totaling about $2.49 billion across 603 deals.
In this week’s column, crypto.news highlights some of the startups that have been making headlines in recent days. According to the crypto fundraising tracker, Cryptocurrency FundraisingThese companies have raised nearly $70 million in announced venture capital between September 1 and September 7.
Balance $30 million
- Gaming platform E-PAL has launched Balance, a new AI-powered blockchain experience platform, following two successful funding rounds led by Andreessen Horowitz (a16z) and Galaxy Interactive.
- Animoca Brands, K5, CLF Partners, MK Capital, Heights Fund, AMBER, MarbleX, Mantra, Tuna, Aptos Labs, IOBC, Leland Ventures, Halon, Uphonest, Taisu Ventures, Gate Labs, DWF Ventures, BING, and WAGMI also contributed to the total $30 million.
- Proceeds will go towards developing the Balance infrastructure – “an open, inclusive and fair ecosystem for Web3.”
Hypernative, $16 million
- Hypernative, known for developing early detection web3 security solutions, has raised $16 million to accelerate the adoption of its AI-powered security products.
- Investors in the Series A led by Quantstamp include Bloccelerate VC, Boldstart Ventures, Borderless Capital, CMT Digital, IBI Tech Fund, Knollwood Investment Advisory, Re7 Capital, and some notable angels.
- This brings Hypernative’s total raised to $27 million. The startup previously raised $9 million in funding from Boldstart and IBI.
Pavbo, $6 million
- PuffPaw, a blockchain-based e-cigarette project, coherent $6M in seed funding led by Lemniscap Ventures.
- The project targets users who want to quit smoking, recording their smoking habits and rewarding them with tokens.
TrendX, $5M
- TrendX has successfully closed its Series A funding round, securing $5 million.
- AHZ, Promontory, Coinstash, Frontier Research, Coresky, Tido Capital and Bullperks
- The startup had previously raised $1 million in seed funding, bringing its total raised to $6 million.
International Development Association, $6 million
- IDA, a Hong Kong-based digital asset company, has secured $6 million in a seed funding round led by CMCC Global, under the Titan Fund, and Hashid.
- The company aims to launch the “world’s first fiat-based stablecoin” called HKDA, which is designed to be regulated in Hong Kong.
- Hack VC, Anagram, GSR, Protagonist, Brinc, Chorus One, Kenetic, SNZ, and Yolo Investments have also joined the fundraising effort. Raj Gokal, co-founder of Solana (SOL), is also a backer.
CryptoHunter World, $2.8 million
- CryptoHunter World, a hybrid gaming service, has closed a $2.8 million private sale round.
- Backed by leading venture capital firms including IOST, HG Ventures, Mindfulness Capital, Bigcandle Capital, Web3Wave, and Layer-OTC, this funding will help bring the blockchain-based collectible role-playing game to the Web 3.0 space.
Additional funding rounds: amounts undisclosed
- Blabla: Closed a seed funding round with participation from Nebula Investment, the European Blockchain Association (BCAEU), and Hopechain.
- Dropnest and Cycle Network: Both startups are backed by Manta Network.
- Vanilla Finance: YTWO, UOB Venture, Pluto Capital, Paper Ventures, Openspace, Notcoin, HTX Ventures Logo, Catizen, ABCDE offering seed funds.
- Chroma: The layer 2 blockchain solutions provider has closed a Series A funding round backed by Asia Advisors Korea, Gate Ventures, ICC Venture, Planetarium, Presto, RFD Capital, Taisu Ventures, The Spartan Group, Waterdrip Capital, and other additional partners who also participated in this round.
- Pencil Protocol: The Startup Project grew up An undisclosed amount of seed funding from Bing Ventures and at least three other investors.
To read last week’s edition of our “Crypto VC” column, click here.