Venture Capital Investment in Crypto Startups
In the past month, venture capital (VC) funds directed over $659 million towards crypto startups, illustrating a 3% increase from August, as reported by DefiLlama.
Growth in Blockchain Gaming Sector
The blockchain gaming industry experienced notable growth for the second month in a row, attracting $63 million in VC investments—a remarkable 32% increase month-over-month.
A significant portion of this investment was funneled into Balance Games, which secured $30 million from prominent firms, including Animoca, a16z, Aptos Labs, and DWF Labs. The goal is to merge blockchain technology with artificial intelligence to enhance user experiences.
Investment Allocation in Blockchain Infrastructure
Blockchain infrastructure projects dominated the investment scene, securing approximately $457 million in September. This accounted for a substantial 71.5% of the overall funds allocated within the crypto ecosystem for that month, matching the amount received in August.
Among these projects, Celestia (TIA) stood out, raising $100 million in a strategic funding round led by Bain Capital Crypto, with contributions from 1kx, Robot Ventures, Syncracy Capital, and Placeholder.
Huma Finance also made headlines by raising $38 million to advance its blockchain-based payment network, with investments from Fenbushi Capital, HashKey Capital, and ParaFi Capital.
DeFi Funding Sees a Decline
Conversely, investments in decentralized finance (DeFi) startups saw a downturn, totaling only $58 million in September—a 55% decline compared to August.
Among these, Drift led the charge with a significant $25 million raised in a Series B round spearheaded by Multicoin Capital. Another noteworthy round was led by Puffpaw, creators of a unique “vape-to-earn” application on Berachain.
Web3 Adoption and Traditional Services
Notably, the Web3 landscape witnessed a boost, with around $59 million invested in startups aiming to integrate blockchain into conventional services.
In this segment, Tune.fm, a decentralized music streaming service akin to Spotify, secured $50 million from Global Emerging Markets Group, showcasing the potential of blockchain technology across traditional sectors.
Funding Overview
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