Venture capital funding in blockchain-based startups fell to $2.4 billion in Q3 2024, marking a 20% decline from the previous quarter, as reported by Galaxy Research. Despite this dip, 478 deals were completed, with early-stage startups dominating the scene, accounting for 85% of the total funding. The industry is still on track to match or slightly surpass the $8 billion invested in 2023. A notable trend in the quarter was a surge in funding for startups combining artificial intelligence (AI) with blockchain, seeing a fivefold increase over the past three months.
Key funding highlights include:
- Layer-1 Blockchain Projects raised $341 million, with Exochain and Story Protocol securing significant portions.
- Web3 and Gaming sectors saw the sharpest decline, with investment dropping by 39%.
- Early-stage companies dominated with the median pre-money valuation standing at $23 million and the average deal size at $3.5 million.
Several promising startups secured funding in early November, including:
1. Eidon AI – Raised $3.5M in seed funding to build a decentralized AI network combining blockchain and human collaboration. Led by Framework Ventures, the startup aims to develop a decentralized economy by incentivizing data contributions for on-chain AI agents.
2. Brevis – Raised $7.5M in seed funding for a platform enabling offchain computations verified on-chain via zero-knowledge proofs (ZK-proofs). This technology solves scalability issues for DeFi, GameFi, and Web3 applications by minimizing computational load.
3. Multiledgers – Raised nearly $1M to develop a blockchain platform for managing ESG-linked assets such as carbon credits and renewable energy bonds. The platform aims to simplify the certification and tracking of these assets, supporting sustainability efforts.
4. Alluvial – Raised $4.3M to expand its Liquid Collective staking protocol, which focuses on enterprise needs for institutional staking solutions. The company aims to cater to financial institutions seeking compliant staking options, with a reported $374M in total value locked (TVL).
These developments show a continued interest in blockchain and AI, with a growing focus on combining the two technologies for enhanced scalability, sustainability, and compliance in various industries.
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