By Cheeky Rolo
Compiled by: TechFlow
Comment from @cheeky_rolo:
It's very profound. November has been a busy month indeed, with Bitcoin hitting all-time highs one after another, which is really exciting. But October...I remember a lot of funny memes. I guess I'm a little confused. The funding market for Web3 startups also seems a bit confusing. While there are clear signs of improvement, this should not be read too much into. Furthermore, monthly snapshots of funding markets are more of a record of investor sentiment over the past few months than a current market indicator. I've written about this before. The financing deal, which closed in October, was the result of months of hard work by the founders. There is a lag between the performance of the broader crypto market and the actual investment of venture capital dollars. Considering what we know about the crypto market in November, will the number of deals and funding raised by startups increase significantly over the next two months? Typically, November and December are not active trading times. This is often a time to put the finishing touches on things and look forward to revisiting them with a new perspective in the New Year. New deals are still considered, but decisions on projects discovered before the Christmas holidays typically extend into the first quarter of the following year. The question is, will the bull run in the crypto market shorten the decision-making cycle of the Web3 risk market? Of course, the situation in the United States must also be considered. A new administration and the recent resignation of a controversial SEC official (who should not have been nominated) seems to indicate that investors may choose to wait and see until the first month of 2025 is over to see where the market really goes.
Web3 Market Overview: Funding of Companies at Each Stage Since 2018
Source: Messari
Data is updated monthly, and figures for the previous month may be adjusted (e.g., to previously raised funding not included in the data, or to remove errors such as duplication)
Key data for October 2024:
171 projects (disclosed) raised a total of $2.3 billion, far exceeding the $870 million raised last month.
This set a new monthly financing record in 2024. Previously, the highest monthly financing this year was in August (US$1.7 billion).
The total number of deals this month reached 337, up 49% from September 2024. Based on this, the total amount raised across all stages is estimated to be approximately $4.5 billion. The month with the most deals in 2024 is still April (279 disclosed deals and a total of 393 deals).
So far in 2024, 1,821 projects (disclosed) have raised a total of $13.8 billion.
The total number of deals was 2,873, with an estimated total funding so far in 2024 of $17.2 billion.
Market highlights this month:
The $525 million raised by Praxis is significant for the Web3 ecosystem as it represents a bold attempt to combine decentralized technologies with real-world, large-scale applications. By leveraging real-world assets (RWAs) to fund a future city in a special economic zone, Praxis demonstrates the potential of crypto-native financing mechanisms to break through regulatory, financial, and cultural barriers. The project aims to attract top talent and achieve breakthroughs in fields such as AI, cryptography, biotech, and more, demonstrating Web3’s ability to drive real-world impacts beyond digital assets. If successful, Praxis could bolster confidence in large-scale blockchain projects and set a precedent for Web3-driven urban development.
Crypto VC Fund Launches Since 2022
Three funds launched with a total of $90 million raised:
GnosisDAO is launching a $40 million venture fund targeting real-world assets, crypto infrastructure, and payments.
VanEck has launched a new $30 million venture fund focused on crypto and AI startups.
Gate Ventures, Movement Labs, and Boon Ventures are launching a $20 million crypto fund to support protocols focused on the Move programming language and interoperability with the Ethereum ecosystem.
Initial Seed Rounds Since 2018
$34.7 million was raised, 17% less than last month, across 14 initial seed-stage financings (disclosed).
The total number of deals was 18, up from 15 in September 2024: All deals are expected to raise a total of approximately $42 million.
The average round size for initial seed rounds this month was $2.5 million.
Since 2018, the average round size for initial seed companies has been $1.6 million.
This month’s initial seed round highlights:
Kiva AI's recent $7 million initial seed funding raise is significant for the Web3 ecosystem as it reflects the growing demand for high-quality, scalable, and cost-effective data solutions designed for specific AI applications. With support from prominent Web3 investors such as CoinFund and Hashkey, Kiva AI is expected to enhance the capabilities of decentralized AI systems that rely on strong data annotation and human-computer interaction feedback to improve performance. By expanding its global network of human experts and advancing its solutions, Kiva AI is able to address key challenges in industries such as finance and law, in line with the Web3 vision of emphasizing transparency, reliability, and decentralization to enable innovation and trust-based applications in these fields.
Seed rounds since 2018:
$214 million was raised, 18% more than last month, across 39 seed-stage companies (disclosed).
The total number of deals was 43, up from 38 in September 2024; all deals are expected to raise a total of approximately $235 million.
The average seed-stage round size this month was $5.5 million.
The average round size for initial seed companies was $4.6 million.
Seed round highlights this month:
Ithaca’s $20M round, led by Paradigm, is a major milestone for the Web3 ecosystem as it empowers an experienced team of developers to accelerate innovation in the crypto technology stack while supporting open source public goods. With expertise in delivering industry-leading tools like Reth and Foundry, Ithaca is able to address key bottlenecks in Layer 2 scalability, user onboarding, and developer functionality. Their first project, Odyssey, introduces cutting-edge features and experimental EIPs ahead of the Ethereum mainnet upgrade, helping developers build faster and smarter. By partnering with major L2 and infrastructure providers and pushing the boundaries of crypto and EVM innovation, Ithaca’s work is laying the foundation for the next generation of applications, driving mainstream adoption and unlocking new consumer experiences in crypto.
Series A funding since 2018
Ten Series A companies raised a total of $147 million (disclosed).
The total number of deals is 11: All deals in this phase are expected to raise a total of approximately $163 million.
The average Series A round size this month was $15 million.
The average round size for Series A companies is $17.5 million.
Market highlights this month:
Azra Games’ recent $42.7 million Series A funding round is significant for the Web3 ecosystem as it demonstrates the convergence of blockchain technology with mainstream gaming, highlighting how digital ownership and immersive economies can redefine the player experience. Backed by notable investors including Pantera Capital and a16z crypto, this funding round validates the potential of integrating Web3 principles such as decentralized economies and player empowerment into highly scalable and engaging mobile RPGs. Azra’s focus on leveraging AI for scalable content creation and developing “fourth generation” RPGs (on par with PC and console experiences) marks a paradigm shift in the mobile gaming space, positioning blockchain-powered games as a competitive force in the broader gaming industry, potentially accelerating the adoption of Web3 technologies by mainstream audiences.