TLDR:
- Web3 startups are still attracting high-value funding in August, with PIP Labs, Andrena, and Gameplay Galaxy securing significant investments.
- New funds, including Parafi Capital and Lemniscap, are targeting Web3 startups to support their growth.
Blockchain startups continue to be popular among investors in August, despite a slight decrease in deals with venture capitalists. The industry is seeing high-value funding raises and optimism, with several Web3 startups securing significant investments during the month. PIP Labs, for example, raised $80 million for its Story Protocol in a Series B round, reaching a $2.25 billion valuation with backing from a16z Crypto and Polychain Capital. Andrena secured $18 million for decentralized wireless internet, while Gameplay Galaxy received $24 million for its blockchain-based game. Investors also showed interest in pouring millions into the Telegram-based game Hamster Kombat, although the developers declined the offer to focus on community needs.
The ecosystem also witnessed the launch of new funds targeting Web3 startups. Parafi Capital secured $120 million for a new crypto fund, following Lemniscap’s $70 million raise to invest in the sector. Open Network Ventures also introduced a $40 million fund to support early-stage crypto projects within the TON ecosystem. Venture capital funding for crypto startups saw a modest increase in the second quarter compared to the first, with total invested capital rising by 2.5% to $2.7 billion. The industry saw a 12.5% decrease in the number of deals, pointing towards a trend of larger, more significant investments.
Some other startups that raised funding in August include:
- Orderly Network: Secured over $5 million in investment for its multichain order book Web3 liquidity layer.
- Echelon: Raised $3.5 million in seed funding for DeFi lending on Move blockchains.
- Solayer Labs: Raised $12 million in a round led by Polychain for its Solana restaking network.
- Parlay Labs: Raised $2 million and launched a multichain no-code platform for memecoin launchpad and trading.
- Level: Developer raised $3.6 million to launch a stablecoin protocol powered by restaked stablecoins.
- Quai: Secured $5 million in funding and launched its devnet for a Layer-1 crypto network.
