Accelerator programs are becoming popular among Web3 startups as the cryptocurrency market enters a bullish phase and investors seek opportunities. These programs provide mentorship and guidance in exchange for early equity. Y Combinator, a well-known accelerator program based in the United States, has seen successful crypto companies like Coinbase and OpenSea emerge from its alumni.
In a recent announcement on March 26, Andreessen Horowitz (a16z) unveiled the lineup for its spring 2024 crypto startup accelerator. This 10-week mentorship program, led by the a16z crypto team in London, will support 25 startups. The selected projects include Farcaster infrastructure, decentralized food delivery, and zero-knowledge passport authentication. Startups accepted into a16z’s accelerator will receive $500,000 from the firm in exchange for 7% equity. Notable alumni from this program include Flashbots and Phantom.
On November 9, 2023, the Avalanche Foundation and Ava Labs introduced the first batch of startups in their accelerator program called Codebase. This program will provide investments ranging from $500,000 to $1 million for the participating startups.
Helika, a Web3 gaming infrastructure company, has recently partnered with Pantera Capital, Spartan Capital, Sfermion, and other venture capital firms. Together, they will allocate up to $50 million to startups participating in Helika Accelerate, a new Web3 gaming accelerator.
The crypto space has witnessed a resurgence in venture capital activity as the bull market gains momentum. Notably, 1kx, a crypto-native venture firm, recently raised $75 million in an oversubscribed fundraising round. Similarly, Hack VC finalized a $150 million round in February.
Sam Lehman, a principal at Symbolic Capital, highlighted the importance of robust crypto accelerators in fostering a sense of community among founders within the network-centric Web3 sphere. In a post on March 26, Lehman emphasized the rise of new crypto accelerators driven by funds looking to enhance their brand and deploy capital quickly. However, he also cautioned against potential predatory practices among some accelerators.
Investment activity in Web3 gaming has also been steadily increasing. 0G Labs, for instance, successfully closed a $35 million pre-seed funding round on March 25. The round saw participation from over 40 crypto-native institutions, including Hack VC and the Blockchain Builders Fund.
In other news, a court ruling has allowed the Securities and Exchange Commission (SEC) to proceed with its lawsuit against Coinbase, a leading cryptocurrency exchange.