The decentralized physical infrastructure networks (DePIN) market is just taking off. Estimated to be worth over $2.2 trillion, startups are already competing with large infrastructure providers.
Many of these startups are backed by Borderless Capital, one of the earliest venture capital companies to bet on decentralized infrastructure. In an exclusive interview with Cointelegraph, Alvaro Gracia, partner at Borderless, discussed how the fund plans to invest its just-launched $100 million fund.
“We’re looking very closely at projects that are based on commodity hardware,” said Gracia.
The term, coined by Borderless’ Sean Carey, is a reference for projects that can run on a smartphone, reducing the need for specialized equipment and easing supply chain challenges.
“We believe that smartphones are very powerful in terms of computing and have many sensors that can be leveraged toward building a distributed physical infrastructure network,” explained Gracia, citing as an example Natix, which uses smartphones for mapping, eliminating the need for proprietary hardware.
Another key point for startups looking to join Borderless’ portfolio is the token value accrual mechanism. According to Gracia, “buyback and burn is a great mechanism” for tokens to accrue value as revenue is generated.
“In the case of Geodnet, they use 80% of their revenue to buy back and burn the token, which creates scarcity in the supply of the token and provides positive pressure for price appreciation,” explained the partner.
Successful examples of DePIN market potential in Borderless’ portfolio also include Helium, a wireless network that rewards users for maintaining and providing 5G coverage.
“Helium was able to deploy a million IoT hotspots in the past year and a half. The same effort would require tens of billions of dollars if it were to be deployed from a centralized company,” Gracia explained.
In September, Borderless backed Mawari Network, a startup developing solutions for spatial computing. The startup is one of the projects featured in this edition of Cointelegraph’s VC Roundup, which also highlights Darkbright Studios, Hemi, Sorted Wallet, Podeo, SecondLive, and other startups.
Mawari Network secures $10.8M for spatial computing
Mawari Network, a decentralized physical infrastructure network focused on spatial computing, has raised $10.8 million in a strategic funding round led by Anfield LTD, Borderless Capital, and 1kx. Other investors include Accord Ventures, Animoca Brands Japan, Blockchange Ventures, and Samsung.
Mawari aims to deliver real-time immersive experiences to devices like Apple Vision Pro and Meta Quest 3. It uses a decentralized GPU-powered content delivery network to address challenges in spatial computing, formerly known as XR (extended reality).
Founded in 2017, the startup has three patents and a client base that includes T-Mobile, Netflix, and BMW. To further decentralize and scale its network, the company plans a node license sale in the fourth quarter of 2024.
Podeo raises $5.4M Series A funding for podcast discovery, monetization
Podcast distribution platform Podeo has raised $5.4 million in a Series A funding round led by Oraseya Capital, with participation from Ibtikar Fund, Cedar Mundi Ventures, Samarium, iSME, and Razor Capital.
The funds will help podcasters overcome discoverability issues, providing tools for content creation, distribution, and monetization.
With a global audience of over 50 million listeners and more than 100,000 creators, Podeo’s platform extends beyond traditional apps, offering exposure through radio stations, airlines, and ride-hailing services.
Founded in 2020, Podeo has significantly expanded podcast supply in the MENA region. According to the startup, it has generated a six-fold revenue increase over the past year.
Podeo announces funding round. Source: Podeo
Hemi Labs secures $15M for modular blockchain integrating Bitcoin and Ethereum
Hemi Labs has raised $15 million in a funding round led by Binance Labs, Breyer Capital, and Big Brain Holdings to develop Hemi, a modular network designed to enhance scaling, security, and interoperability by uniting Bitcoin and Ethereum. Crypto.com, Web3 Ventures and HyperChain Capital also participated in the funding round.
Hemi aims to address blockchain fragmentation by treating Bitcoin and Ethereum as components of a unified supernetwork. Its core features include the Hemi Virtual Machine (hVM), which integrates a Bitcoin node within an Ethereum Virtual Machine, and trustless cross-chain portability. Hemi’s incentivized mainnet launch is planned for Q4 2024.
Darkbright Studios raises $6M seed funding led by BITKRAFT Ventures for RPG Game
Darkbright Studios has raised $6 million in a seed round led by BITKRAFT Ventures. Other investors backing the startup include Play Ventures, Anthos Capital, King River Capital, among others.
The funds will be used to develop Smolboun, a new life simulation RPG that blends elements of Animal Crossing and Raft. It features interactive characters, hero collection mechanics, and a robust user-generated content (UGC) ecosystem.
Founded by former developers from studios like PopCap and ArenaNet, Darkbright was incubated by Treasure DAO. Smolbound integrates Web3 for content ownership and has garnered over 200,000 email subscriptions to date. The game is set to launch in 2025 on the Treasure layer-2 blockchain, with closed playtests beginning in 2024.
Related: Over 80% of 2022 crypto startups are still kicking despite market chaos
Tether invests $1.5M in Sorted Wallet to serve Africa and Asia
Tether has backed a crypto wallet targeting emerging markets. According to an announcement on Sept. 19, the stablecoin issuer invested $1.5 million in Sorted Wallet, seeking to enhance financial inclusions across Africa and Southern Asia.
It provides a non-custodial wallet for unbanked and underbanked users with limited access to advanced technology, specifically designed for feature phones and low-powered smartphones.
“By supporting Sorted Wallet, we unlock new opportunities for individuals with basic mobile phones to participate in the financial system. Our goal is to ensure that everyone, regardless of location or phone type, can securely manage and utilize cryptocurrency,” said Tether CEO Paolo Ardoino in a statement.
Tether announced Sorted investment. Source: Tether
Southern Asia and Oceania (CSAO) has one of the world’s most dynamic cryptocurrency markets. As of June 2023, India leads the region in transaction volume, receiving an estimated $268.9 billion in crypto assets.
Crypto.com, Cypher Capital lead $12M funding round for AI-powered metaverse SecondLive
Cypher Capital has announced its participation in a $12 million private funding round for SecondLive, an AI-powered Web3 open metaverse platform. Led by Crypto.com, the funding round also saw contributions from Spark Digital, MetaEstate, TAISU Ventures, and others, bringing SecondLive’s total financing to $15 million.
The investment will support SecondLive’s growth by supporting its AI capabilities to create virtual spaces for large-scale events, social networks, and creator economic activities. SecondLive currently serves over 5 million registered users across eight public chains, including BNB Chain and Ethereum, offering customizable avatars, virtual spaces, and tools for creating and trading digital assets.
Movement Labs’ accelerator startups raise $13.2M seed funding
Four members of the Movement Labs accelerator program have recently raised seed funding. The breakdown includes Lync, with $1.5 million in capital, alongside HelixLabs with $2 million, Nexio at $2.2 million, Echelon with $3.5 million, and Meridian at $4 million.
The startups enrolled in the ‘Move Collective’ program, which provides participants with funding opportunities, expert mentorship, strategic networking, and essential resources. In addition, the Web3Port Foundation has secured $10 million for the Movement Ecosystem Fund, which will focus on investing in native DeFi, Consumer, and Gaming applications within the Movement Network.