Crypto Startups See Major Funding Boost

Despite market fluctuations, venture capital continues to flow into the crypto space. This week, crypto startups raked in a significant $155 million across 14 different projects, pushing the year-to-date investment total close to $25 billion. This represents a staggering 160% increase compared to last year, exceeding analyst expectations.

Institutional Interest Grows

This latest round of funding wasn't just from crypto-native firms. Tech-focused VCs like General Catalyst and Jump Trading were active, along with investment arms of major players such as Coinbase Ventures, Wintermute Ventures, and GSR. Notably, traditional financial institutions like BNY Mellon, Nasdaq Ventures, iCapital, and S&P Global also participated, signaling a growing acceptance and integration of blockchain technology within established financial circles.

According to Thiago Rüdiger, CEO of blockchain infrastructure firm Tanssi, investors are increasingly prioritizing startups demonstrating real revenue and robust infrastructure. He highlights Layer-1 solutions and stablecoin issuers as particularly attractive, due to their clear business models and demonstrable traction.

Key Deals This Week

Here's a look at some of the top funding rounds from the first week of December:

• Canton Network: $50 Million - A Layer-1 blockchain designed for tokenized assets, securing backing from BNY Mellon, Nasdaq Ventures, iCapital, and S&P Global.
• Portal: $25 Million - A Bitcoin-focused non-custodial exchange and wallet, received funding led by JTSA Global.
• Ostium Labs: $20 Million - A decentralized exchange (DEX) offering perpetual futures on real-world assets, secured a Series A led by General Catalyst with participation from Jump Trading, Coinbase Ventures, Wintermute Ventures, and GSR.

Key Takeaways

• Crypto startup funding is booming, exceeding previous year's figures.
• Traditional financial institutions are increasingly investing in blockchain infrastructure.
• Projects with clear revenue models and strong infrastructure are attracting the most capital.