Original Title: October 2024: Web3 Fundraising Snapshot
Original Author: Cheeky Rolo
Original Translation: Deep Tide TechFlow
Comment from @cheeky_rolo:
It's very insightful. November was indeed an exciting month, with Bitcoin repeatedly hitting new all-time highs, truly thrilling. But October... I remember a lot of funny memes. I think I'm a bit puzzled. The fundraising market for Web3 startups also seems a bit confused. Although there are clear signs of improvement, it should not be overinterpreted. Furthermore, the monthly snapshot of the fundraising market is more of a record of investor sentiment over the past few months rather than a current market indicator. I have written about this before. The fundraising deals completed in October were the result of founders' months of hard work. There is a certain lag between the broader crypto market performance and the actual deployment of venture capital funds.
Considering our understanding of the November crypto market, will the number of transactions and funding amounts for startups in the next two months see a significant increase? Typically, November and December are not active trading periods. This time is usually for wrapping up and looking forward to a fresh perspective in the new year. New deals are still considered, but the decision-making time on projects discovered before the Christmas holiday is often extended to the first quarter of the next year. The question is, will the bull market in crypto shorten the decision-making cycle for the Web3 risk market? Of course, the situation in the United States must also be considered. A new administration and the departure of a controversial SEC official (who should not have been nominated) seem to indicate that investors may choose to wait and see the true direction of the market until the end of January 2025.
Web3 Market Overview: Company Fundraising Status at Each Stage Since 2018
Source: Messari
The data is updated monthly, and the numbers for the previous month may be adjusted (e.g., fundraising not previously included in the data, or removal of duplicates and errors).
October 2024 Key Data:
· 171 projects (disclosed) raised a total of $2.3 billion, far exceeding the previous month's $870 million.
· This created a new high in single-month fundraising for 2024. Previously, the highest fundraising month of the year was August (1.7 billion USD).
· The total number of transactions this month reached 337, a 49% increase from September 2024. Based on this, the total fundraising amount for all stages is estimated to be around 4.5 billion USD. The month with the highest number of transactions in 2024 remains April (revealed transactions were 279 out of a total of 393).
· From 2024 to date, 1,821 projects (disclosed) have collectively raised 13.8 billion USD.
· The total number of transactions is 2,873, with an estimated total fundraising amount of 17.2 billion USD so far in 2024.
Highlights of the Month:
· The 525 million USD raised by Praxis is significant for the Web3 ecosystem as it represents a bold attempt to combine decentralized technology with real-world large-scale applications. By leveraging Real World Assets (RWA) to fund a future city in a specific economic zone, Praxis showcases the potential of crypto-native funding mechanisms in breaking through regulatory, financial, and cultural barriers. The project aims to attract top talent and make breakthroughs in AI, crypto tech, biotech, and other fields, demonstrating Web3's ability to drive real-world impact beyond digital assets. If successful, Praxis could boost confidence in large-scale blockchain projects and set a precedent for Web3-driven urban development.
Crypto Venture Fund Launches Since 2022
Three funds launches have collectively raised 90 million USD:
· GnosisDAO is rolling out a 40 million USD venture fund targeting real-world assets, crypto infrastructure, and payments.
· VanEck has launched a new 30 million USD venture fund focusing on crypto and AI startups.
· Gate Ventures, Movement Labs, Boon Ventures will launch a 20 million USD crypto fund supporting projects focused on the Move programming language and interoperability with the Ethereum ecosystem.
Initial Seed Round Fundings Since 2018
· $34.7 million has been raised, a 17% decrease from the previous month, involving 14 disclosed seed-stage funding projects.
· The total number of transactions is 18, an increase from 15 in September 2024: all transactions are expected to have raised approximately $42 million.
· The average funding size for seed-stage projects this month is $2.5 million.
· Since 2018, the average funding size for seed-stage companies has been $1.6 million.
Key Highlights of Seed Round Investments This Month:
The recent $7 million seed funding raised by Kiva AI is significant for the Web3 ecosystem as it reflects the growing demand for high-quality, scalable, and cost-effective data solutions tailored for specific AI applications. With support from well-known Web3 investors like CoinFund and Hashkey, Kiva AI is poised to enhance the capabilities of decentralized AI systems that rely on robust data annotation and human-in-the-loop feedback to boost performance. By expanding its global network of expert annotators and improving its solutions, Kiva AI is addressing critical challenges in industries such as finance and law, aligning with Web3's emphasis on transparency, reliability, and decentralization, thus driving innovation and trust-based applications in these sectors.
Seed Round Funding Since 2018:
· $2.14 billion has been raised, an 18% increase from the previous month, involving 39 seed-stage companies (disclosed).
· The total number of transactions is 43, higher than the 38 in September 2024; all transactions are expected to have raised approximately $2.35 billion.
· The average funding size for seed-stage projects this month is $5.5 million.
· The average funding size for seed-stage companies is $4.6 million.
Key Highlights of Seed Round Investments This Month:
The $20 million funding of Ithaca, led by Paradigm, is a significant milestone for the Web3 ecosystem as it empowers a seasoned development team to accelerate innovation across the crypto tech stack while supporting open public goods. Leveraging expertise in providing industry-leading tools like Reth and Foundry, Ithaca addresses critical bottlenecks in Layer 2 scalability, user onboarding, and developer capabilities. Their first project, Odyssey, introduced cutting-edge features and experimental EIPs ahead of the Ethereum mainnet upgrade, aiding developers in faster, smarter builds. By collaborating with major L2 and infrastructure providers and pushing the boundaries of crypto and EVM innovation, Ithaca's work sets the foundation for next-gen applications, driving mainstream adoption and unlocking new consumer experiences in the crypto space.
Series A Funding Since 2018
· 10 Series A-stage companies raised a total of $147 million (disclosed).
· Total number of transactions is 11: all transactions in this stage are expected to raise approximately $163 million.
· The average funding amount for Series A-stage this month is $15 million.
· The average funding amount for Series A companies is $17.5 million.
Market Highlights This Month:
· The recent $42.7 million Series A funding secured by Azra Games is significant for the Web3 ecosystem as it showcases the integration of blockchain technology with mainstream gaming, emphasizing how digital ownership and immersive economies are redefining player experiences. With support from notable investors such as Pantera Capital and a16z crypto, this funding round validates the potential of integrating Web3 principles (such as decentralized economy and player empowerment) into a highly scalable and engaging mobile RPG. Azra focuses on leveraging AI for scalable content creation and developing a "fourth-generation" RPG (on par with PC and console experiences), marking a paradigm shift in the mobile gaming space by positioning blockchain-supported games as a competitive force within the broader gaming industry, potentially accelerating mainstream adoption of Web3 technology by audiences.
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