171 projects (disclosed) have raised a total of $2.3 billion, far exceeding last month's $870 million.
Author: Cheeky Rolo
Compiled by: Deep Tide TechFlow
Comment from @cheeky_rolo:
It's profound. November is indeed a bustling month, with Bitcoin hitting new all-time highs consecutively, which is quite exciting. But what about October... I recall many funny memes. I think I'm a bit confused. The financing market for Web3 startups also seems a bit bewildering. While there are clear signs of improvement, it shouldn't be overinterpreted. Additionally, the monthly snapshot of the financing market is more of a record of investors' sentiments over the past few months rather than a current market indicator. I have written about this before. The funding transactions completed in October are the result of founders' months of efforts. There is a certain lag between the performance of the broader crypto market and the actual investments made by venture capital funds. Given our understanding of the crypto market in November, will the number of transactions and the amount raised by startups significantly increase in the next two months? Typically, November and December are not active trading periods. This time is usually for wrapping up and looking forward to re-examining with a new perspective in the new year. New transactions are still being considered, but the decision-making time for projects discovered before the Christmas holidays often extends into the first quarter of the following year. The question is, will the bull market in the crypto market shorten the decision-making cycle in the Web3 venture market? Of course, we must also consider the situation in the United States. A new government and the recently departed controversial SEC officials (who should not have been nominated) seem to suggest that investors may choose to wait and see until after the first month of 2025 to observe the true direction of the market.
Web3 Market Overview: Company financing across stages since 2018
Source: Messari
Data is updated monthly, and figures from the previous month may be adjusted (e.g., funding not previously included in the data, or removal of duplicates and other errors).
Key data for October 2024:
171 projects (disclosed) have raised a total of $2.3 billion, far exceeding last month's $870 million.
This created a new monthly financing record for 2024. Previously, the highest monthly financing this year was in August ($1.7 billion).
The total number of transactions this month reached 337, an increase of 49% compared to September 2024. It is estimated that the total fundraising across all stages is approximately $4.5 billion. The month with the highest number of transactions in 2024 remains April (with 279 disclosed transactions, totaling 393 transactions).
So far in 2024, 1,821 projects (disclosed) have raised a total of $13.8 billion.
The total number of transactions is 2,873, with an estimated total fundraising of $17.2 billion so far in 2024.
This month's market highlights:
The $525 million raised by Praxis is significant for the Web3 ecosystem as it represents a bold attempt to combine decentralized technology with large-scale applications in the real world. By funding a future city with real-world assets (RWA) in a special economic zone, Praxis showcases 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 areas such as AI, crypto technology, and biotechnology, demonstrating Web3's ability to drive real-world impact beyond digital assets. If successful, Praxis could enhance confidence in large-scale blockchain projects and set a precedent for Web3-driven urban development.
Launch of crypto venture capital funds since 2022
Three funds have raised a total of $90 million:
GnosisDAO is launching a $40 million venture fund focused on 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 will launch a $20 million crypto fund supporting protocols focused on the Move programming language and interoperability with the Ethereum ecosystem.
Initial seed round financing since 2018
$34.7 million has been raised, a decrease of 17% from last month, involving 14 initial seed stage financing projects (disclosed).
The total number of transactions is 18, an increase from 15 in September 2024: it is estimated that all transactions raised approximately $42 million.
The average financing size for initial seed stage this month is $2.5 million.
Since 2018, the average financing size for initial seed companies is $1.6 million.
This month's initial seed round highlights:
The recent $7 million initial 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 specifically designed for certain AI applications. With support from well-known Web3 investors like CoinFund and Hashkey, Kiva AI is expected to enhance the capabilities of decentralized AI systems that rely on robust data labeling and human-machine interaction feedback to improve performance. By expanding its global network of human experts and enhancing its solutions, Kiva AI is able to tackle key challenges in industries like finance and law, aligning with the Web3 vision of emphasizing transparency, reliability, and decentralization, thereby achieving innovation and trust-based applications in these fields.
Seed round financing since 2018:
$214 million has been raised, an increase of 18% compared to last month, involving 39 seed-stage companies (disclosed).
The total number of transactions is 43, up from 38 in September 2024; it is estimated that all transactions raised approximately $23.5 million.
The average financing size for seed stage this month is $5.5 million.
The average financing size for initial seed companies is $4.6 million.
This month's seed round highlights:
$20 million financing for Ithaca, led by Paradigm, is a significant milestone for the Web3 ecosystem, as it empowers an experienced development team to accelerate innovation in the crypto technology stack while supporting open-source public goods. With expertise in providing industry-leading tools such as Reth and Foundry, Ithaca is able to address key bottlenecks in Layer 2 scalability, user onboarding, and developer functionality. Their first project, Odyssey, introduced cutting-edge features and experimental EIPs ahead of the Ethereum mainnet upgrade, helping developers build faster and smarter. By collaborating with major L2 and infrastructure providers and pushing the boundaries of crypto and EVM innovation, Ithaca's work lays the foundation for next-generation applications, promoting mainstream adoption and unlocking new consumer experiences in the crypto space.
Series A financing since 2018
10 Series A stage companies have raised a total of $147 million (disclosed).
The total number of transactions is 11: it is estimated that all transactions in this stage raised approximately $163 million.
The average financing size for Series A stage this month is $15 million.
The average financing size for Series A companies is $17.5 million.
This month's market highlights:
Azra Games' recent $42.7 million Series A financing is significant for the Web3 ecosystem as it demonstrates the fusion of blockchain technology with mainstream gaming, emphasizing how digital ownership and immersive economies are redefining player experiences. Supported by notable investors like Pantera Capital and a16z crypto, this funding validates the potential of integrating Web3 principles (such as decentralized economies and player empowerment) into highly scalable and engaging mobile RPGs. Azra focuses on using AI for scalable content creation and developing 'fourth generation' RPGs (comparable to PC and console experiences), marking a paradigm shift in mobile gaming that positions blockchain-supported games as a competitive force in the broader gaming industry, potentially accelerating mainstream adoption of Web3 technologies.