Crypto Funding Overview for October: Monthly Funding Exceeds $2.3 Billion, a Year-High, but Year-End Investment Decision Cycles Slow Down
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Crypto Funding Overview for October: Monthly Funding Exceeds $2.3 Billion, a Year-High, but Year-End Investment Decision Cycles Slow Down
171 disclosed projects raised $2.3 billion, far exceeding last month's $870 million.
Navigating Web3 tides with focused insightsAuthor: Cheeky Rolo
Translation: TechFlow
Comments from @cheeky_rolo:
It's profound. November has indeed been a lively month, with Bitcoin repeatedly hitting new all-time highs—truly exciting. But what about October... I remember many funny memes. I feel somewhat confused. The fundraising market for Web3 startups also seems a bit lost. While there are clear signs of improvement, they shouldn't be overinterpreted. Moreover, a monthly snapshot of the funding market resembles more of a record of investor sentiment over the past few months rather than a real-time barometer of current market trends. I've written about this before. Funding deals closed in October were the result of founders' efforts over several months. There is a lag between broader crypto market performance and the actual deployment of venture capital into startups. Given what we know about the crypto market in November, will the number of deals and amount raised by startups significantly increase over the next two months? Typically, November and December aren't active periods for transactions. This time of year is usually about wrapping things up and looking forward to reassessing with fresh perspectives in the new year. New deals are still considered, but decisions on projects identified before the Christmas holidays often extend into the first quarter of the following year. The question is, will the crypto bull market shorten the decision-making cycle in the Web3 venture market? Of course, the U.S. situation must also be considered. A new administration and the recent departure of a controversial SEC official (who should never have been nominated) suggest investors may choose to wait and see how the market truly evolves after the first month of 2025.
Web3 Market Overview: Company Fundraising Across Stages Since 2018
Source: Messari
Data is updated monthly; figures for the previous month may be adjusted (e.g., funding not previously included or removal of duplicates and other errors)
Key Data for October 2024:
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171 projects (disclosed) raised a total of $2.3 billion, far exceeding last month’s $870 million.
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This marks a new monthly fundraising high for 2024. Previously, August had the highest monthly total at $1.7 billion.
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Total transaction count reached 337 this month, a 49% increase from September 2024. Based on this, estimated total fundraising across all stages was around $4.5 billion. April 2024 remains the busiest month in terms of transaction volume (279 disclosed deals, totaling 393).
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Year-to-date in 2024, 1,821 projects (disclosed) have raised $13.8 billion.
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Total transactions amount to 2,873, with an estimated total capital raised so far in 2024 reaching $17.2 billion.
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Market highlights this month:
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Praxis raising $525 million is significant for the Web3 ecosystem as it represents a bold attempt to combine decentralized technology with large-scale real-world applications. By leveraging real-world assets (RWA) to fund a future city within a special economic zone, Praxis demonstrates the potential of crypto-native financing mechanisms to overcome regulatory, financial, and cultural barriers. The project aims to attract top talent and achieve breakthroughs in AI, cryptography, biotechnology, and beyond, showcasing Web3’s ability to drive tangible impact beyond digital assets. If successful, Praxis could boost confidence in large-scale blockchain initiatives and set a precedent for Web3-driven urban development.
Crypto Venture Fund Launches Since 2022
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Three funds launched, collectively raising $90 million:
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GnosisDAO is launching a $40 million venture fund targeting real-world assets, crypto infrastructure, and payments.
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VanEck launched a new $30 million venture fund focused on crypto and AI startups.
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Gate Ventures, Movement Labs, and Boon Ventures are launching a $20 million crypto fund supporting protocols focused on the Move programming language and interoperability with the Ethereum ecosystem.
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Initial Seed Rounds Since 2018
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$34.7 million raised, down 17% from last month, involving 14 initial seed-stage fundraising projects (disclosed).
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Total transaction count was 18, up from 15 in September 2024; expected total capital raised across all deals estimated at approximately $42 million.
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Average initial seed round size this month was $2.5 million.
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Since 2018, the average initial seed round size has been $1.6 million.
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Initial seed round highlights this month:
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Kiva AI’s recent $7 million initial seed raise is significant for the Web3 ecosystem as it reflects growing demand for high-quality, scalable, and cost-effective data solutions tailored specifically for AI applications. Backed by prominent Web3 investors such as CoinFund and Hashkey, Kiva AI is poised to enhance decentralized AI systems that rely on robust data annotation and human-in-the-loop feedback to improve performance. By expanding its global network of human experts and enhancing its solutions, Kiva AI can address critical challenges in sectors like finance and law, aligning with Web3’s vision of transparency, reliability, and decentralization, enabling innovation and trust-based applications in these domains.
Seed Rounds Since 2018:
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$214 million raised, an 18% increase from last month, involving 39 seed-stage companies (disclosed).
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Total transaction count was 43, higher than 38 in September 2024; estimated total capital raised across all deals around $235 million.
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Average seed-stage funding size this month was $5.5 million.
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Average initial seed round size was $4.6 million.
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Seed round highlights this month:
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Ithaca’s $20 million raise, led by Paradigm, is a major milestone for the Web3 ecosystem, empowering an experienced team to accelerate innovation across the crypto tech stack while supporting open-source public goods. With expertise in delivering industry-leading tools such as Reth and Foundry, Ithaca can tackle key bottlenecks in Layer 2 scalability, user onboarding, and developer tooling. Their first project, Odyssey, introduces cutting-edge features and experimental EIPs ahead of Ethereum mainnet upgrades, helping developers build faster and smarter. By collaborating with major L2s and infrastructure providers and pushing the boundaries of crypto and EVM innovation, Ithaca lays the foundation for next-generation applications, driving mainstream adoption and unlocking new consumer experiences in crypto.
A Rounds Since 2018
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10 A-round stage companies raised a total of $147 million (disclosed).
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Total transaction count was 11; expected total capital raised across all deals in this stage estimated at approximately $163 million.
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Average A-round funding size this month was $15 million.
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Average A-round company raises $17.5 million.
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Market highlights this month:
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Azra Games’ recent $42.7 million Series A round is significant for the Web3 ecosystem as it showcases the integration of blockchain technology into mainstream gaming, emphasizing how digital ownership and immersive economies can redefine player experiences. Supported by well-known investors like Pantera Capital and a16z crypto, this funding validates the potential of integrating Web3 principles—such as decentralized economies and player empowerment—into highly scalable and engaging mobile RPGs. Azra’s focus on using AI for scalable content creation and developing a “fourth-generation” RPG (on par with PC and console experiences) marks a paradigm shift in mobile gaming, positioning blockchain-powered games as competitive players within the broader gaming industry and potentially accelerating mainstream adoption of Web3 technologies.
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