Venture capitalists are raising significantly more money for cryptocurrency-related funds this year compared to last year’s economic downturn.
According to PitchBook’s latest report, released September 5, the median fund size is up 65.1% to $41.3 million in 2024.
These days, it’s common for savvy crypto investors to form mid-sized crypto venture funds, with funds ranging from $100 million to $500 million. “These funds are large enough to support the growth of the sector, but small enough to avoid the scaling challenges faced by megafunds, making them essential to today’s ecosystem,” writes Robert Le, principal analyst at PitchBook.
But just because the money is there doesn’t mean venture capitalists aren’t being cautious. The time between fundraising and the time it takes to close funds have both lengthened over the past three years, Le said.
“This trend signals a challenging fundraising environment ahead as LPs become more selective and risk averse following recent market downturns,” Le adds.
It’s worth noting that in the second quarter of this year, Galaxy data shows that venture capitalists invested just under $3.2 billion (a 28% increase from the previous quarter) in crypto and blockchain-focused companies. But that money went to 577 deals, a 4% decrease from the previous quarter. Over the previous three months, venture capital investments in crypto and blockchain startups increased by 29% from the previous quarter, 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 Crypto Fundraising, a cryptocurrency fundraising tracker, these companies raised nearly $70 million in disclosed venture capital between September 1 and 7.
Balance, $30 million
- Gaming platform E-PAL has introduced 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 $30 million total.
- Proceeds will be used to develop the Libra infrastructure — “an open, inclusive and equitable Web3 ecosystem.”
Hypernative, $16 million
- Hypernative, known for developing an early detection Web3 security solution, has raised $16 million to accelerate the adoption of its AI-powered security products.
- Investors in the Series A round led by Quantstamp include Bloccelerate VC, Boldstart Ventures, Borderless Capital, CMT Digital, IBI Tech Fund, Knollwood Investment Advisory, Re7 Capital and a few notable angel investors.
- Hypernative has raised $27 million in total. The startup had previously raised $9 million from Boldstart and IBI.
Puffpaw, $6 million
- PuffPaw, a blockchain-based e-cigarette project, has secured $6 million in seed funding led by Lemniscap Ventures.
- The project is aimed at users who want to quit smoking. It records their smoking habits and rewards them with tokens.
TrendX, $5 million
- TrendX has successfully closed its Series A funding round, raising $5 million.
- AHZ, Promontory, Coinstash, Frontier Research, Coresky, Tido Capital and Bullperks
- The startup has already raised $1 million in seed funding, bringing its total to $6 million.
IDA, $6 million
- Hong Kong-based digital asset company IDA has secured $6 million in a seed funding round led by CMCC Global, under its Titan Fund, and Hashed.
- The company aims to launch its “first fiat-referenced 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 also participated in the round. Solana (SOL) co-founder Raj Gokal is one of the backers.
CryptoHunter World, $2.8 million
- CryptoHunter World, a hybrid gaming service, has completed a private sale of $2.8 million.
- Backed by leading venture capital firms including IOST, HG Ventures, Mindfulness Capital, Bigcandle Capital, Web3Wave, and Layer-OTC, this funding round will help bring blockchain-based collectible role-playing games into the Web 3.0 space.
Additional funding rounds: amounts not disclosed
- Blabla: Closing of a seed funding round with the participation of Nebula Investment, the European Blockchain Association (BCAEU) and Hopechain.
- Dropnest and Cycle Network: both startups are supported by Manta Network.
- Vanilla Finance: YTWO, UOB Venture, Pluto Capital, Paper Ventures, Openspace, Notcoin, HTX Ventures Logo, Catizen and ABCDE are providing seed funding.
- Kroma: Layer 2 blockchain solutions provider has completed a Series A funding round with support from Asia Advisors Korea, Gate Ventures, ICC Venture, Planetarium, Presto, RFD Capital, Taisu Ventures, The Spartan Group, Waterdrip Capital and other additional partners also participated in this round.
- Crayons Protocol: The startup has raised an undisclosed amount of seed funding from Bing Ventures and at least three other investors.
For last week’s edition of our “Crypto VC” column, click here.
