Blockchain-based protocols are closing the third quarter of 2024 with fewer deals with venture capitalists but still, high-value funding raises and optimism across the industry.
August alone has seen a number of Web3 startups securing big checks. PIP Labs, for instance, raised $80 million for its Story Protocol, hitting a $2.25 billion valuation in its Series B round. Backers of the layer-1 blockchain designed for managing intellectual property include a16z Crypto and Polychain Capital.
The month also saw Andrena securing $18 million to offer decentralized wireless internet and Gameplay Galaxy receiving $24 million in funds for its blockchain-based game. Investors were also looking to pour millions of dollars into the Telegram-based game Hamster Kombat, but the developers reportedly declined the offer to focus on its community needs.
The ecosystem has also welcomed new funds targeting Web3 startups. Parafi Capital, for instance, secured $120 million for a new crypto fund just a day after Lemniscap raised $70 million to invest in the space. In addition, Open Network Ventures launched a $40 million fund to support early-stage crypto projects within the TON ecosystem.
Taking a look back at the year, venture capital funding for crypto startups saw a modest increase in the second quarter compared to the first, with total invested capital rising by 2.5% to $2.7 billion, according to a Pitchbook report. The industry also saw a 12.5% decrease in the number of deals, indicating a shift toward larger, potentially fewer, but more significant investments in the sector.
Source: Pitchbook
This edition of Cointelegraph’s VC Roundup explores some other startups that raised funding in August.
Orderly Network raises $5M for multichain order book
Web3 liquidity layer Orderly Network has secured over $5 million in investment from OKX Ventures, Manifold Trading, Presto Labs, LTP, Nomad Capital, and Origin Protocol. Orderly Network promises to address liquidity challenges in DeFi by consolidating orders into a unified order book across multiple blockchains, utilizing its own Orderly Chain and LayerZero’s technology. The funding follows a previous seed round that raised $20 million from venture capital firms such as Pantera, Sequoia China, Laser Digital, Dragonfly, and Jump. The new capital comes as Orderly Network prepares to distribute 60% of the network’s net trading fees to stakers. Orderly Network currently supports six blockchains: Polygon, Arbitrum, Optimism, Base, Ethereum mainnet, and Mantle. According to the protocol, it has achieved a cumulative trading volume of over $71 billion, with net fees exceeding $7.6 million as of July.
Echelon lands $3.5M in Seed Funding for DeFi lending on Move blockchains
Decentralized lending protocol Echelon has secured $3.5 million in seed funding to expand decentralized finance (DeFi) lending on Move-based blockchains. Amber Group led the funding round, which included Laser Digital, Saison Capital, Selini Capital, Interop Ventures, and Re7. The protocol seeks to integrate markets with other DeFi applications and real-world assets (RWAs). Developed using the Move programming language, Echelon targets institutional-grade markets on Movement, Aptos, and other Move-based blockchains. With the new funding, the startup plans to develop treasury and RWA-backed strategies, implement vaults for cross-chain deposits, and hire full-stack and smart contract engineers.
Related: VC Roundup: Crypto fundraising grows, but investors are more wary
Solayer Labs raises $12M in round led by Polychain
Solana restaking network Solayer Labs has raised $12 million in a funding round led by Polychain, with participation from other investors. The funds will support Solayer’s efforts to improve Solana’s network infrastructure and transaction throughput. The initial phase of the startup’s work targets Solana’s network bandwidth optimization, addressing transaction inclusion rates and censorship resistance. Solayer builds on Solana’s stake-weighted Quality-of-Service mechanism, which prioritizes transactions through staked validators to scale the network horizontally. According to an announcement, Solayer has achieved $190 million in total value locked (TVL) and attracted over 100,000 unique deposit addresses since its launch in May. The mainnet launch includes features such as a restaking vault.
Parlay Labs raises $2M, rolls out multichain no-code platform
Parlay Labs has raised $2 million from DNA.fund and angel investors in a funding round. The startup has recently launched the Parlay platform, a multichain, no-code memecoin launchpad and trading platform. The platform is currently available on Ethereum, Base, Optimism, Arbitrum, Avalanche, Polygon, BSC, and Blast, with plans to support additional blockchain networks. Parlay offers no-code, multichain token launching, allowing users to create tokens in under 60 seconds. Other features include developer lockups, anti-whale provisions, and anti-rug solutions.
Level developer raises $3.6M to launch stablecoin protocol
Peregrine Exploration, a blockchain development and research company, has announced a $3.6 million funding round co-led by Polychain Capital and Dragonfly. The funds will be used to develop Level, a protocol powered by restaked stablecoins. Additional investors include Robot Ventures, Pier Two, EIV, Global Coin Research, and several angel investors. Level’s stablecoin, lvlUSD, will allow users to mint lvlUSD and earn rewards by restaking dollar tokens, like Tether (USDT) and USD Coin (USDC). In other words, the protocol wants to provide economic security to decentralized networks by allowing stablecoins to be used as security assets.
Layer-1 Quai secures $5M in funding, launches devnet
Layer-1 crypto network Quai has secured $5 million in strategic funding from Cogitent Ventures, MH Ventures, TPC Ventures, Giga Chad Ventures, and DexCheck Ventures. Quai’s blockchain architecture focuses on providing a scalable and secure infrastructure for decentralized applications (DApps) and transactions. Quai has also unveiled its Mainnet-compatible Devnet, equipped with workshares, UTXO transactions, and dynamic sharding. The new capital will accelerate the network’s growth, including team expansion, research and development, and community engagement. Combined with a previous $10 million investment from Polychain Capital and Alumni Ventures, the new capital brings Quai’s total funding to $15 million.
Magazine: How Chinese traders and miners get around China’s crypto ban