The first quarter of 2024 is coming to an end, and there are positive indications that the sentiment towards cryptocurrencies is improving. This can be attributed to the introduction of Bitcoin exchange-traded funds (ETFs) in January.
This favorable market trend has the potential to boost venture capital investment, which has been relatively low in recent times. According to a report from Galaxy Digital, venture capital firms in the crypto and blockchain industry raised $5.75 billion in 2023, compared to a record-breaking $37.7 billion in 2022.
However, there are signs of recovery as venture funding reached $1.9 billion in the last quarter of 2023, showing a 2.5% increase from the previous quarter. This is the first time since early 2022 that venture capital investments in crypto startups have seen growth.
One factor that is attracting investors is the emergence of solutions that combine artificial intelligence and blockchain technologies. Additionally, there are products specifically targeting institutional investors who are entering the crypto space.
In Cointelegraph’s VC Roundup, several startups that have secured funding in the first few weeks of March are highlighted:
1. Utila: The enterprise-focused wallet provider has raised $11.5 million in seed funding from investors such as NFX, Wing VC, and Framework Ventures. Utila offers a self-custody wallet platform for institutional investors, supporting various chains like Bitcoin, Ethereum, and Solana. The startup has facilitated over $3 billion in transactions on its platform in the past six months.
2. Synnax: This startup has secured $1 million in pre-seed funding for its credit intelligence platform aimed at the digital asset industry. Led by No Limit Holdings, the funding will be used to develop an unbiased credit rating standard that facilitates the transition from traditional private credit markets to blockchain technology. Synnax uses decentralized artificial intelligence models to address the shortcomings of current credit rating systems.
3. Sahara: The decentralized AI network startup has raised $6 million in a seed funding round led by Polychain Capital. Other investors include Samsung Next, Matrix Partners, and Motherson Group. Sahara enables the creation of autonomous Knowledge Agents (KAs) that can analyze external and internal proprietary data. It also offers data services for AI model training with a focus on privacy and security.
4. TON Foundation: Mirana Ventures has invested $8 million in Toncoin, the native token of The Open Network (TON). The TON Foundation, Bybit, and the Mantle Network have formed a partnership, with Bybit incorporating Toncoin into its offerings. TON Space, Telegram’s self-custodial wallet, is connecting users with Mantle Network through the integration of TON-based MNT tokens. The funds will support community development and projects.
5. UXLINK: The Web3 social platform has raised nearly $10 million in funding from investors such as OKX Ventures and Web3Port Foundation. UXLINK is a unique social network that emphasizes two-way, friendship-like connections. It offers features like a social decentralized exchange for digital asset trading and a reward module for user participation and contribution.
6. TEN: Ethereum layer 2 network TEN has raised $9 million in a funding round led by banking consortium R3. The platform combines optimistic rollups and zero knowledge rollups to provide an encrypted layer 2 for developers. The team is working on customizable privacy levels in smart contracts, allowing developers to choose which parts to make private and public. TEN is set to be released on the mainnet in October.
Overall, these funding rounds indicate a positive outlook for the crypto and blockchain industry in the first quarter of 2024. The combination of improved sentiment, the development of innovative solutions, and the interest of institutional investors bodes well for the sector’s future growth.