- AWeb3VC
- Posts
- AWeb3VC - Funding Round Up #49
🗓️ Week of: Dec 3-9, 2023
Also be sure to follow me on X (fka. Twitter) @aweb3vc 🚀
(See "Funding Rounds" section for the complete list of deals)
$105M+ was raised across 24 funding rounds in Web3. Although funding has declined this week, the overall climate for Web3 ventures has seen dramatic improvement as Q4 and 2023 draw to a close. Ask any investor right now, dealflow has been strong. Undoubtedly, the broader crypto markets are influencing this trend, with Bitcoin reaching $44K and hitting all-time highs in 2023. This surge undoubtedly has been changing investor sentiment and optimism in the sector. Financial services (i.e., CeFi) and DeFi businesses and projects, are likely to benefit the most. They stand to gain from expanding revenues and commissions that are linked to rising token prices. Moreover, the growing focus on Bitcoin is also catalyzing a wave of companies dedicated to building infrastructure and services tailored to the largest blockchain network and cryptocurrency.
🏆 Largest Funding Round
➡️ Babylon raised $18M in Series A funding, led by Polychain and Hack VC. Other investors participating in the round included Framework Ventures, Polygon Ventures, Castle Island Ventures, OKX Ventures, Finality Capital, Breyer Capital, Symbolic Capital, IOSG Ventures, Cluster Capital, Primitive, L2IV, Geek Cartel, Chainfund Capital, Web3.com Ventures, ABCDE, and various angel investors.
Babylon is a protocol designed to enhance the security and decentralization of Proof of Stake (PoS) blockchains by leveraging the Bitcoin network. It achieves this by using the Bitcoin network as a timestamping server and integrating Bitcoin as a native staking asset in other blockchains. This approach allows emerging PoS blockchains to secure their networks without relying solely on their native tokens and associated token raises to distribute those tokens to a diversified holder base. Furthermore, Babylon introduces a new method for Bitcoin holders to stake their coins on PoS blockchains, enabling them to earn passive yields.
The protocol is currently exploring partnerships with the Cosmos and Polygon networks and is expected to officially launch on the mainnet in the first half of 2024.
Why this matters?👉Similar to re-staking, Babylon is developing a new standard for network security that centers around Bitcoin. This development offers significant advantages to new layer 1 blockchains, as they can leverage the long-standing security of Bitcoin while integrating it within their own networks. Additionally, Bitcoin holders benefit from the ability to convert satoshis into native staking assets. While these developments are promising for both parties, the potential widespread adoption of Babylon raises broader questions. Specifically, it prompts a reevaluation of the purpose of PoS blockchains' own native tokens if staking can be effectively outsourced to another asset.
😎 Noteworthy Company
➡️ Swan is a financial service firm that focuses solely on Bitcoin. The company’s mission is to facilitate long-term Bitcoin accumulation through a variety of investment vehicles. Its customer base includes everyday people, high-net-worth individuals, businesses, and financial advisors.
Swan’s primary service helps individuals easily purchase and invest in Bitcoin. The service provides streamlined options for both one-time and recurring purchases using dollar-cost averaging, allowing users to invest in Bitcoin regularly with set amounts on a daily, weekly, or monthly basis. They also pride themselves on offering low commission fees, typically around 0.99% for all purchases, which can be up to 80% cheaper than other platforms, depending on the purchase size.
In addition to its Bitcoin investment platform, Swan also provides a range of other services. This includes Bitcoin Individual Retirement Accounts (IRAs) and private wealth management services, encompassing OTC trading, execution services, and inheritance and estate planning. They also offer Bitcoin treasury services to businesses and a platform for financial advisors to manage their clients' investments in Bitcoin. Lastly, Swan provides custody services via multi-signature self-custody setup options. Recently, Swan entered into a partnership with BitGo to provide custody services through a Bitcoin-only trust company.
Reported by Fortune, Swan had raised $165M in 2023, to be used for private equity and venture capital funds focused on the Bitcoin ecosystem. Founder and CEO, Cory Klippsten, also stated that Swan plans to raise another $150M for expansion in 2024 given the company reached 2023 annualized income of $125M and is on target to reach $200M in revenue by 2024.
Why this matters?👉 Given the broader institutional narrative in crypto, Bitcoin-related financial services have been one of the largest segments attracting significant venture investment in 2023. Besides the narrative, Bitcoin has been one of the top-performing assets in 2023. Increased venture investments in this sector are anticipated, particularly as many companies experience expanding commissions in line with the rising price of Bitcoin.
💸 Funding Rounds
Top 15 Rounds
Want access to our complete dataset or propose an update? Contact: [email protected]
All Rounds
Candlestick - Seed ($1.2M) | Crypto opportunity radar powered by actionable trading signals and predictions for alpha traders: https://www.candlestick.io/
Ten (fka. Obscuro) - Seed ($7.5M) | EVM-based encrypted Layer 2 for Ethereum using Secure Enclave technology: https://obscu.ro/
Inspect - Strategic (Not Disclosed) | Web3 analytics platform creating a second layer to X (fka. Twitter): https://www.inspect.xyz/
LandX - Private Sale ($5M) | Agricultural finance platform providing upfront capital to farmers in return for a percentage of their future harvests: https://landx.fi/tge
Jellyverse - Private Sale ($2M) | DeFi platform that merges the power of decentralized finance with real-world asset: https://jellyverse.org/
Curvance - Seed ($3.6M) | Full-service omnichain money market for yield-bearing assets across DeFi: https://www.curvance.com/
SYMMIO - Seed ($1.1M) | Decentralized protocol for Symmetrical Contracts enabling bilateral Over-The-Counter (OTC) derivatives on-chain: https://www.symm.io/
Pyth Network (aka. Pyth Data Association) - Private Sale (Not Disclosed) | Decentralized oracle for financial market data across multiple blockchains: https://pyth.network/
Endless Clouds - Seed+ ($2.5M) | Game development studio behind MMORPG games Treeverse and Capsule Heroes: https://endlessclouds.xyz/
Shadow - Seed ($9M) | Infrastructure for shadow events that enables advanced onchain data indexing and analytics: https://www.shadow.xyz/
FLOKI - Private Sale ($1.3M) | People’s cryptocurrency and utility token of the community-powered Floki Ecosystem: https://www.floki.com/
Versatus (aka. VRRB Labs) - Seed ($2.3M) | Developer of LASR, a stateless rollup enabling scalability for blockchain networks: https://versatus.io/
QANplatform - Private Sale ($15M) | Quantum-resistant Layer 1 hybrid blockchain platform: https://www.qanplatform.com/en
CARV - Strategic (Not Disclosed) | Credential and self-sovereign identity (SSI) data infrastructure focused on gaming: https://carv.io/
Sona - Seed ($6.9M) | Music streaming platform enabled by Web3 technology and primitives: https://sona.stream/
Babylon - Series A ($18M) | Protocol that enables time stamping and staking to be shared Bitcoin and other PoS blockchains: https://babylonchain.io/
Sindri - Seed ($5M) | Platform enabling simple access to hardware used for zero-knowledge proof (ZKP) generation: https://sindri.app/
StarryNift - Strategic (Not Disclosed) | AI-powered co-creation metaverse that offers immersive 3D virtual experiences for gaming, creation and socializing: https://starrynift.art/
MAP Protocol - Strategic (Not Disclosed) | Layer 2 protocol for Bitcoin enabling peer-to-peer cross-chain interoperability: https://www.mapprotocol.io/
THENA - Private Sale ($600K) | Native liquidity layer and automated market maker (AMM) on the BNB Chain: https://www.thena.fi/
Mocaverse (Animoca Brands) - Private Placement ($11.9M) | Animoca Brands membership NFT collection and metaverse platform: https://www.mocaverse.xyz/
Rhinestone - Seed (Not Disclosed) | Platform to enable a secure ecosystem of smart account modules: https://www.rhinestone.wtf/
Brahma - Seed+ ($2.5M) | Non-custodial protocol that activates and manages liquidity across chains and DApps: https://www.brahma.fi/
Nonco - Seed ($10M) | Digital asset brokerage company for financial institutions and professional investors: https://nonco.com/
New Funds
🙌 Cool Resources
🐕 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 the 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.