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- AWeb3VC - Funding Round Up #14
🗓️ Week of: April 2-8, 2023
Also be sure to follow me on Twitter @aweb3vc 🚀
💡Web3 Funding Snapshot
Perhaps we've turned a corner? April is already off to a good start following the end-of-March momentum. For the second week in a row, we see another $100M+ funding round, led by LayerZero, who not only raised a large round but also tripled their last valuation. We also saw four new crypto/Web3 funds announced this week, potentially bringing in another $500M in capital that could be deployed in Web3 in the months ahead. Not to mention, in this roundup, we cover the ever expanding list of Web3-oriented accelerator programs, which will only fuel more Seed stage rounds and "buidling" across the space. Let's see if this momentum continues as Q2 progresses.
🏆 Largest Funding Round
➡️ LayerZero, announced $120M in Series B funding that saw over 33 investors participate in the round. Some of the most notable investors included Sand Hill Road VC firms, a16z Crypto, Sequoia Capital, Lightspeed Venture Partners, and Bond Capital, as well as the venture arms of Web3 companies Circle, OpenSea, and OKCoin. Most notably, the round valued the company at $3B, up almost 3x from its Series A valuation.
LayerZero is an interoperable messaging protocol (aka. a "bridge") that enables users and applications to send different types of messages/transactions between blockchains, such as cross-chain interactions, without the need for intermediaries. The protocol currently connects with over 30 blockchain networks, including two non-Ethereum Virtual Machines (EVMs) – Aptos and Solana – and is used by various on-chain applications, particularly decentralized exchanges (DEXs). Since launching, the protocol has secured over $7B in total value locked and processed over $6B in transactional volume, with hundreds of thousands of users that have used the protocol and sent over 3M messages.
Why this matters?👉 LayerZero appears to have cracked the nut when it comes to trustless cross-chain interoperability. It is increasingly becoming a key infrastructure component across decentralized applications, especially those built on Layer 2 networks. It's also introducing more efficiency into DeFi, which opens billions of dollars in liquidity. LayerZero's impressive traction and transaction volume also appeared to play a significant role in its successful tripling of valuation. All goes to show investors are still willing to deploy dry powder and pay a premium in this climate as long as the company is performing... Above all, I think we’ve witness the next big player in Web3 emerge!
😎 Noteworthy Company
➡️ OpenEden is building products to offers investors exposure to tokenized assets through on-chain vaults. Their first product, the OpenEden T-Bill vault, allows USDC stablecoin holders to earn yield from US Treasury Bills. Users deposit USDC into a permissioned vault, mint a TBILL token, and the proceeds are invested directly into short-dated US Treasury Bills with principal and interest paid upon redeeming the TBILL token. All assets underlying the smart contract vaults are held through a bankruptcy-remote special purpose vehicle (SPV) and a third-party custodian, providing optimal investor protection in the event of OpenEden's bankruptcy.
The company was founded by Jeremy Ng and Eugene Ng, two former executives of Gemini's Asia Pacific region, and is headquartered in Singapore. The platform is currently in beta and is in the process of onboarding 50 clients. While they will initially focus on tokenized T-Bills, OpenEden plans to expand their offerings to include other tokenized assets such as bonds, stocks, and real estate investment trusts (REITs).
Why this matters?👉 Tokenized T-Bills are not new, as well as other tokenized financial assets. However, OpenEden sets itself apart by utilizing bankruptcy-remote SPVs to legally protect assets represented on-chain, which is similar to traditional securitization structures. This is very important should TradeFi institutional investors take this product seriously and why I think they standout from competition. Plus, their launch is timely given Citi's recent report forecasting a $4 trillion tokenization of financial assets in the next decade... I guess these guys are good on timing.
👀Observations, Trends & Themes
➡️ Rise of Web3 Accelerator Programs
As the crypto industry continues to navigate through winter, more and more VC funds and investors are looking for new ways to generate alpha and maximize future returns. In recent years, accelerators, incubators, and fellowships tailored specifically to Web3 startups have been gaining traction as an alternative investment strategy. They offer new sources of reliable deal flow while gaining early access to up-and-coming founders and projects. However, most importantly, they enable investors to invest earlier and at much lower valuations.
From established accelerators like Techstars to newer programs like Beacon and Seed Club, along with a16z's flagship Crypto Startup School, it's clear that this trend is on the rise.
For a great articulation of this Web3 accelerator trend and the motives behind it, check out this recent tweet by Regan Bozman of the venture firm Lattice Fund:
Get in losers, we're starting an accelerator!
a16z, Variant, Delphi, Paradigm have all launched accelerators/fellowships this year
What gives?
-Higher aum-->more expensive alpha
-YC reputation decline
-Hunt for lower cost basis1/ Some jumbled thoughts on this trend
— Regan Bozman (@reganbozman)
9:13 PM • Apr 6, 2023
Why this matters?👉Accelerators require a significant amount of overhead to run successfully, raising questions about their long-term viability, especially as firms must justify costs to their LPs. Despite the uncertainty surrounding the ROI of these programs, successful ones will gain a significant competitive edge and likely achieve incredible returns. Above all, with dozens of Web3-focused programs available, founders have more options than ever to launch their next startup. All these programs offer an excellent package to founders and will fuel building and innovation in the years ahead, which is undoubtedly a positive development for our industry 👍
That said, here is a list of some of the leading Web3 focused accelerators, incubators, and fellowship programs that I’ve curated:
Accelerators
Incubators
Fellowships
💸Funding Rounds
Top 15 Rounds
Want access to our complete dataset or propose an update? Contact: [email protected]
All Rounds
SwissBorg - Series A ($23.3M) | Community-centric crypto wealth management platform, connecting users to leading crypto exchanges via smart engine technology, and offering other investment products: https://swissborg.com/
Granary Finance - Public Sale ($5M) | Decentralized, user-driven borrowing and lending liquidity market inspired by Aave: https://www.grain.sale/
Everywhere Finance - Public Sale ($1.6M) | Omnichain wallet that enables users to send transactions from multiple blockchains at once: https://everywhere.finance/
Alchemy Pay - Private Sale ($10M) | Payment gateway that seamlessly connects crypto and global fiat currencies for businesses, developers, and users: https://alchemypay.org/
Halo Wallet (fka. KuCoin Wallet) - Strategic (Not Disclosed) | A secure and easy-to-use self-custody crypto wallet that supports multi-chain aggregation and supports social finance: https://halo.social/
Acre - Seed ($8.1M) | Mortgage broker platform that uses blockchain technology to input detailed consumer and property data: https://www.acresoftware.com/
Coinweb - Private Sale ($2M) | Layer 1 blockchain network and cross-chain computation platform that spans multiple self-sovereign blockchains: https://coinweb.io/
TopGoal - Private Sale (Not Disclosed) | Football metaverse platform, combines officially authorized digital collectibles, Web3 sports games, and social features: https://topgoal.io/
Bitget - Strategic ($10M) | Crypto derivatives exchange: https://www.bitget.com/en/
LayerZero - Series B ($120M) | Omnichain interoperability protocol that enables tokens to be sent in a single transaction across multiple different blockchains: https://layerzero.network/
Franklin - Seed ($2.9M) | Fiat and crypto payroll platform for Web3 companies: https://www.hellofranklin.co/
Polyhedra Network - Seed+ ($15M) | Interoperability, privacy, and scalability platform that uses zero-knowledge (ZK) proof technology to develop applications including, a ZK bridge (zkBridge), a ZK decentralized identity solution (zkDID) and a scalability solution using a large-scale distributed proof generation network (ParaPlonk): https://polyhedra.network/
Ecosapiens - Seed ($3.5M) | Carbon-backed digital collection of NFTs created to permanently sequester carbon: https://www.ecosapiens.xyz/
Nibiru Chain - Seed ($8.5M) | Layer 1 blockchain that unifies leveraged derivatives trading, spot trading, staking, and bonded liquidity provision: https://nibiru.fi/
Astria - Seed ($5.5M) | Modular blockchain that allows rollups to share a decentralized Sequencer network: https://www.astria.org/
Satsuma - Seed ($5M) | Blockchain indexing and query platform supporting hosted subgraphs: https://www.satsuma.xyz/
ENS Vision - Seed ($2M) | Bulk search, register, and aggregated marketplace for Ethereum Name Service (ENS) domains: https://ens.vision/
Kryptview - Seed ($1.5M) | Community-driven research platform for crypto tokens: https://kryptview.com/
IOST - Strategic ($10M) | High throughput, scalable, and secure blockchain network based on the “Proof of Believability” (PoB) consensus algorithm: https://iost.io/
Metropoly - Public Sale ($1.1M) | NFT marketplace to invest in income-generating real estate properties: https://www.metropoly.io/
M^ZERO - Seed ($22.5M) | Decentralized network enabling institutional participants to reliably link assets to a decentralized infrastructure layer: https://m0.xyz/
Finst - Seed ($4.4M) | Retail focused cryptocurrency exchange focused on the European market: https://finst.com/en
RACA - Private Sale ($16M) | Web3 gaming ecosystem and metaverse platform for game studios, governed by a community-driven decentralized autonomous organization (DAO): https://www.raca3.com/
Mutiny Wallet - Seed ($300K) | Self-custodial, privacy-focused wallet for Bitcoin: https://mutinywallet.com/
Karrier One - Seed (Not Disclosed) | Carrier-grade decentralized mobile network that connects smart phones and users using blockchain: https://karrier.one/
Yuliverse - Seed (Not Disclosed) | Game-based social application offering an alternate reality meta-universe parallel to the real world: https://www.yuliverse.com/
Patientory - Seed ($1.5M) | Ethereum-based decentralized medical record storage computing platform: https://patientory.com/
Zealy (fka. Crew3) - Seed ($3.5 M) | Enables Web3 companies to engage, analyze and scale their communities through a variety of gamified tasks: https://zealy.io/
Lore - Strategic ($4M) | Group ownership platform enabling Web3 collectives to manage on-chain memberships, pool & manage capital, ownership, and co-purchase and use virtual assets together: https://lore.xyz/
Opside - Seed ($4M) | Zero knowledge (ZK) as a service platform that offers 3-layer blockchain architecture: https://opside.network/
Huddle01 - Seed ($2.8M) | Decentralized real-time communication (dRTC) network: https://www.huddle01.com/
Steer Protocol - Seed ($1.5M) | Decentralized compute platform that enables developers to write cross-chain apps, connect reliable external data, and execute on any blockchain: https://steer.finance/
Social Future - Seed ($6M) | Metaverse that enables immersive social experiences via personalized avatars and generative ownable 3D virtual worlds: https://www.may.social/
Third Summit - Seed ($4.5M) | Focuses on building products that empower creators: https://thirdsummit.com/
Safeheron - Seed+ (Not Disclosed) | Institutional-grade multi-party computing (MPC) self-custody platform for digital assets: https://www.safeheron.com/
New Funds
Cool Resources
For the best dashboards covering all the nooks and crannies of Web3, check out hildobby and their amazing dashboards on Dune Analytics.
About
AWeb3VC is a source for venture funding news, emerging startups and trends across Web3. I've been closely following cryptocurrencies and digital assets since 2013 and started working in space since 2018. Now I'm on a mission to build the most extensive venture ecosystem for BUIDLERS in Web3, starting first by tracking those BUIDLERS.