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Crypto Startups Lead the Charge in February’s $485 Million Venture Capital Boom

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Venture capital firms have shown increasing interest in cryptocurrency startups, with February witnessing a significant increase in investments.

CryptoBriefing, citing data from DefiLlama, reported that crypto startups received $485 million in funding last month, representing a 5.3% increase from the previous month and the highest investment volume. highest in the last quarter.

A significant portion of the capital, amounting to $387 million, was allocated to infrastructure-related startups. The most notable investment was made by a16z, which injected $100 million into EigenLayer in a private funding round. This is the largest allocation of venture capital to a crypto startup in February.

EtherFi, a liquid staking platform, also secured a remarkable $27 million investment in a Series A round. The round was led by Bullish and CoinFund.

Additionally, payment platform Oobit successfully completed a Series A funding round, receiving $25 million. This round was led by Tether and CMCC Global.

Decentralized finance (DeFi) projects have attracted more than $48 million in investments during the same period. Superform Labs, aiming to develop a universal yield marketplace, has raised $6.5 million in a funding round led by Polychain Capital.

Omega’s initiative to build a DeFi ecosystem on top of Bitcoin received $6 million in a private round, with contributions from Borderless Capital and Blockchain.com.

Web3-focused apps have also attracted investor interest, securing nearly $18 million in February. Beoble, working on a web3 messaging app and social platform, received the largest investment in this sector, with $7 million coming from entities including Samsung Next and Hashkey Capital.

The gaming sector was not left out, with $33 million dedicated to new game studios. Helika, a gaming studio, raised $8 million in a Series A round led by Pantera Capital. Another big investment was in web3 game Pixelmon, which attracted $8 million from Animoca Ventures and Delphi Ventures.

Earlier in September, Colleen Sullivan of Brevan Howard Asset Management’s crypto venture arm recognized the potential of blockchain technology in gaming.

However, she also highlighted current limitations, including throughput issues on networks like Solana, which can only process around 2,000 transactions per second. This capacity is considered insufficient to host high-quality gaming experiences on-chain, according to Sullivan.

Despite February’s robust activity, a broader perspective of October’s PitchBook data indicates a slowdown in investments in the crypto market.

In the third quarter of 2023, venture capitalists invested $2 billion in crypto, representing a 63% decrease from the same period in 2022. This drop in funding levels is attributed to a reduction in deal sizes, as noted by PitchBook analyst Robert Le. .

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