Blockchain Startups Thrive with Major Funding Rounds: Q3 2024
Blockchain Startups – As the third quarter of 2024 concludes, blockchain-based protocols continue to attract significant investments, albeit with fewer deals from venture capitalists. Despite the reduced number of transactions, the industry maintains its momentum with substantial funding raises and a positive outlook.
PIP Labs Leads with $80M for Story Protocol, Reaching $2.25B Valuation
In August alone, several Web3 startups secured major investments, showcasing the continued interest in blockchain innovation. Notably, PIP Labs raised an impressive $80 million for its Story Protocol, achieving a $2.25 billion valuation during its Series B round. This layer-1 blockchain, designed for managing intellectual property, attracted backing from prominent investors such as a16z Crypto and Polychain Capital.
Andrena and Gameplay Galaxy Secure Millions for Decentralized Projects
Other notable funding rounds in August included Andrena, which secured $18 million to develop decentralized wireless internet, and Gameplay Galaxy, which raised $24 million to advance its blockchain-based game. Meanwhile, the developers behind the Telegram-based game Hamster Kombat reportedly declined a significant investment offer to prioritize community needs.
New Crypto Funds Launched, Parafi Capital Secures $120M
The Web3 ecosystem also welcomed new funds aimed at supporting startups in the space. Parafi Capital raised $120 million for a new crypto fund, while Lemniscap secured $70 million for similar investments. Additionally, Open Network Ventures launched a $40 million fund dedicated to early-stage crypto projects within the TON ecosystem.
VC Funding in Crypto Startups Increases by 2.5% in Q2 2024
Reflecting on the year’s progress, venture capital funding for crypto startups saw a modest increase in the second quarter of 2024, with total invested capital rising by 2.5% to $2.7 billion, according to a Pitchbook report. However, the number of deals decreased by 12.5%, indicating a shift towards fewer but more significant investments in the sector.
Orderly Network Raises $5M to Tackle Liquidity Challenges in DeFi
Web3 liquidity layer Orderly Network secured over $5 million in investment from a range of backers, including OKX Ventures and Manifold Trading. The protocol aims to address liquidity challenges in decentralized finance (DeFi) by consolidating orders into a unified order book across multiple blockchains. With the new funding, Orderly Network is poised to enhance its platform and distribute 60% of net trading fees to stakers.
Echelon Secures $3.5M for DeFi Lending on Move Blockchains
Decentralized lending protocol Echelon raised $3.5 million in seed funding to expand DeFi lending on Move-based blockchains. The funding round, led by Amber Group, will enable Echelon to integrate markets with other DeFi applications and real-world assets (RWAs). The startup also plans to develop treasury and RWA-backed strategies and implement vaults for cross-chain deposits.
Solayer Labs Raises $12M to Enhance Solana’s Network Infrastructure
Solana restaking network Solayer Labs raised $12 million in a funding round led by Polychain. The funds will support Solayer’s efforts to optimize Solana’s network infrastructure and transaction throughput. Solayer’s work focuses on improving Solana’s bandwidth and scaling the network horizontally through its stake-weighted Quality-of-Service mechanism.
Parlay Labs Raises $2M for Multichain No-Code Platform
Parlay Labs raised $2 million in a funding round led by DNA.fund and angel investors. The startup recently launched its Parlay platform, a multichain, no-code memecoin launchpad and trading platform. Parlay offers users the ability to create tokens in under 60 seconds and includes features like developer lockups and anti-rug solutions.
Level Developer Raises $3.6M to Launch Stablecoin Protocol
Peregrine Exploration, a blockchain development company, raised $3.6 million in a funding round co-led by Polychain Capital and Dragonfly. The funds will be used to develop Level, a protocol powered by restaked stablecoins, allowing users to mint lvlUSD and earn rewards by restaking dollar tokens like Tether and USD Coin.
Quai Secures $5M for Layer-1 Blockchain and Launches Devnet
Layer-1 crypto network Quai secured $5 million in strategic funding from a group of venture firms, including Cogitent Ventures and MH Ventures. Quai’s blockchain architecture focuses on providing scalable infrastructure for decentralized applications (DApps). The new capital will accelerate Quai’s growth, supporting research, development, and community engagement.
FAQ: Blockchain Funding in Q3 2024
How did blockchain-based startups perform in terms of funding in Q3 2024?
Blockchain-based startups saw significant funding in Q3 2024, despite a decrease in the overall number of venture capital deals. The quarter was marked by fewer but higher-value investments, reflecting a shift towards more substantial financial backing for select projects.
What are some notable funding rounds that took place in August 2024?
August 2024 witnessed several major funding rounds, including PIP Labs raising $80 million for its Story Protocol, Andrena securing $18 million for decentralized wireless internet, and Gameplay Galaxy receiving $24 million for its blockchain-based game. Additionally, Orderly Network, Echelon, Solayer Labs, and Parlay Labs all closed significant funding rounds to further develop their blockchain solutions.
Which blockchain protocol secured the highest valuation in its latest funding round?
PIP Labs secured the highest valuation in its Series B funding round, raising $80 million and achieving a valuation of $2.25 billion for its Story Protocol, a layer-1 blockchain designed for managing intellectual property.
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