VC Funding For Crypto Startups Soars To $634M In August
By: Eva Baxter
According to recent data from DefiLlama, venture capital (VC) funds invested an impressive $634 million in crypto startups during August, marking a 15% increase compared to July. This surge in investment is indicative of the growing confidence and interest in the blockchain space.
Notably, projects centered on blockchain infrastructure captured the lion's share of the funding, securing nearly $460 million. This accounted for 72% of the total funds raised by crypto startups in August. Among these, PIP Labs stood out with a remarkable $80 million raised in its Series B round, which was led by a16z and included participation from Polychain Capital and digital artist Cozomo de’ Medici. The funds will aid the development of Story, a blockchain network specializing in intellectual property.
Another noteworthy project, Bridge, a platform focused on stablecoin issuance and transactions, raised around $58 million in a private round. This round was led by prominent names such as Sequoia Capital, Ribbit Capital, Index Ventures, and Haun Ventures.
DeFi Sector
The DeFi sector also saw significant activity, attracting nearly $129 million in investments, which is approximately 50% more than the capital received in July. Morpho Labs led the charge by securing $50 million from investors including Ribbit Capital, Coinbase Ventures, Variant Fund, and Pantera Capital. Morpho is noted for its decentralized cross-chain lending application compatible with the Ethereum Virtual Machine (EVM).
Duelnow, a decentralized sports-betting platform, raised $11 million, making it the second-largest DeFi-related funding round. The funds will help foster its growth within the Arbitrum ecosystem.
Gaming Sector
The web3 gaming ecosystem experienced a significant boost as well, with VC investment more than doubling from July to August, totaling over $43 million. Gameplay Galaxy, the developer of the biking game Trial Xtreme, raised $11 million in a Seed+ round. This round saw participation from Blockchain Capital and Merit Circle.
Additionally, Moonveil, a gamer-focused ecosystem, caught considerable attention. With substantial investments from HashKey Capital, The Spartan Group, and Animoca Ventures, Moonveil secured $9 million for its continued development.
