In the latter part of 2023, crypto startups secured around $1.9 billion across 326 deals according to a recent report.
According to PitchBook, while there was a 2.5% increase in the funds received by these startups, there was a 2.4% decrease in the number of deals compared to the previous quarter of 2023.
This shift is attributed to a reduction in available funds for Web3 startups over the past 18 months.
It aligns with the ongoing bear market, where investors exercise caution due to the downturn in major projects like FTX, Terraform Labs, Celsius, and various other factors.
On the other hand, PitchBook noted that the 2.9% increase is positive feedback from the industry as it indicates a comeback for VC firms into crypto.
Additionally, it added that despite recent challenges faced by centralized exchanges such as Binance and FTX, investors maintain optimism regarding Centralized Finance (CeFi) providers.
Centralized exchanges, as highlighted by PitchBook, offer several advantages contributing to improved user experiences and increased accessibility for cryptocurrency adoption among the general public.
These platforms, combined with their associated wallets, create a more user-friendly environment compared to other options in the crypto space.
Wormhole, Swan Bitcoin, and Blockchain.com led in Q4
The report reveals that in Q4 2023, the largest deal was secured by the cross-chain bridging protocol Wormhole.
The protocol raised $225 million in an early-stage round, valuing the company at $2.5 billion post-money.
Notable investors in this round included Coinbase Ventures, Jump Trading, and ParaFi Capital.
Wormhole functions as a blockchain interoperability protocol facilitating seamless value and information transfer across various blockchains.
Initially developed by Jump Crypto, a crypto venture capital firm, Wormhole was launched in August 2021.
As an open-source platform, Wormhole links the decentralized web, empowering developers to expand their user base securely and at scale, increase market share, and boost on-chain activity.
Wormhole’s Messaging protocol serves as the cornerstone of its interoperability solution, facilitating secure cross-chain transfers of tokens or data.
By integrating an in-app bridging widget with just three lines of code, developers can easily create multichain applications.
Wormhole supports a wide range of blockchains and has facilitated billions of dollars’ worth of value transfers and millions of messages.
In November 2023, Wormhole successfully secured $225 million in funding at a valuation of $2.5 billion, marking its separation from Jump Crypto.
The team behind Wormhole established Wormhole Labs as a new entity to drive further protocol development.
This significant capital infusion, alongside the launch of Wormhole Labs, solidified the split between Wormhole and Jump Crypto.
PitchBook also highlighted that leading centralized exchanges, Swan Bitcoin and Blockchain.com, each raised substantial funding rounds, with Swan Bitcoin securing $165 million and Blockchain.com raising $100 million.
Swan Bitcoin is a cryptocurrency investment platform that enables users to purchase Bitcoin using their bank accounts.
The platform offers various services, such as recurring buys, instant buys, and private client services tailored for businesses and high-net-worth individuals.
Additionally, Swan Bitcoin offers educational resources on Bitcoin to help users grasp the cryptocurrency market and make well-informed investment choices.
The platform boasts a user-friendly design with a simple interface that simplifies the process of investing in Bitcoin.
On the other hand, Blockchain.com is a cryptocurrency financial services company that provides a platform for storing, utilizing, managing crypto assets, and exploring cryptocurrency transactions.
Originating as the first Bitcoin blockchain explorer in 2011, the company later introduced a cryptocurrency wallet, contributing to its widespread popularity.
In addition to running a cryptocurrency exchange, Blockchain.com offers institutional market lending services, as well as data, charts, and analytics.
The company’s non-custodial wallet ensures that users have full control over their wallets, with the company having no access to the wallet’s data.
Blockchain.com’s platform includes market data and analytics, with its key products being the cryptocurrency wallet, exchange, block explorer, and institutional market services.
Other funds – Together.ai
In the same period, Together.ai also secured a noteworthy $102.5 million in a Series A funding round led by Nvidia, Emergence, and Kleiner Perkins. This raised the company’s valuation to $463.5 million.
Together.ai is a research-driven company dedicated to pushing the boundaries of AI capabilities.
Specializing in open-source research, models, and datasets, the company is at the forefront of advancing AI’s frontiers.
One of the key contributions of Together AI is its commitment to providing resources that propel AI development.
By offering open-source research, models, and datasets, the company actively contributes to the progress of AI.
The focal point of Together AI’s offerings lies in its decentralized cloud services. These services empower developers and researchers to not only train and fine-tune AI models but also deploy generative AI models effectively.
Crucially, Together AI places a strong emphasis on openness and transparency in AI systems.
The company firmly believes that open and transparent AI systems are instrumental in driving innovation and, more importantly, generating the best outcomes for society.
