VC Roundup: Capital flows into emerging AI-blockchain sector

The blending of artificial intelligence with blockchain technology has emerged in 2024 as a key focus for venture capital investment. According to data from analytics firm Stocklytics, AI startups secured $11.8 billion in the past 90 days, representing 30% of all venture capital funding in the third quarter of 2024. 

Analytics firm Nansen recently highlighted the rise of AI solutions running on blockchain rails as a particularly active area within decentralized finance (DeFi) applications.

This emerging market is attracting a growing number of startups. Wire Network, for instance, launched a new blockchain designed for AI agents with a Universal Transaction Layer (UTL) that supports decentralized and autonomous transactions across multiple blockchains.

“We’re at a pivotal moment where AI is ready to explode, but blockchain tech is holding it back,” Ken DiCross, founder and CEO of Wire Network, told Cointelegraph.

The platform recently announced a $3 million funding backed by Red Bear Ventures, bringing its valuation to $150 million. According to DiCross, the network allows AI agents “to transact freely, across any blockchain, without bridges or costly delays.”

Another platform developing infrastructure to support the AI-blockchain intersection is OpenGradient, which recently received $8.5 million in seed funding. Venture firms actively betting in this new field include Pantera Capital, a16z, and Coinbase Ventures, just to mention a few. 

Incorporating AI into blockchain is not necessarily synonymous with decentralization, warns DiCross.

“It’s prudent to highlight there will be both centralized and decentralized AI utilizing blockchain. Our focus is on making independent AI the global standard. This will be the best outcome for users to own their own data, own their AI agents, and freely transact without third-party dependencies,” he noted, adding that:

“While decentralizing is the most difficult option, it will all be solved with time and proper engineering.”  

Analysts at GMI Research estimate the sector to be worth over $335 billion by 2030. 

This edition of Cointelegraph’s VC Roundup also features Blockcast, Apex Fusion, PiP World and Lombard. 

Blockcast completes $2.85M seed funding round led by Lattice Fund

Blockcast has announced the completion of a $2.85 million seed funding round led by Lattice Fund. Participants included Protocol Labs, Finality Capital Partners, AllianceDAO, Zee Prime Capital, RW3 Ventures, and angel investors such as Anatoly Yakovenko, founder of Solana.

The funding will support the development of new scalable content delivery networks (CDNs) to meet growing demands for livestreams, software updates, games, and media releases. Built on Solana, the protocol aims to address the internet’s capacity needs.

Cisco’s 2023 Annual Internet Report indicates a consistent annual increase in global internet traffic by 24%. Blockcast’s solution integrates traditional broadcasting technology with internet streaming, supporting content delivery while reducing data consumption, rebuffering, and latency. It also aims to reduce congestion for internet service providers (ISPs) and lower costs for users.

OpenGradient raises $8.5M in seed funding for decentralized AI infrastructure

Decentralized AI infrastructure firm OpenGradient has secured $8.5 million in seed funding from a16z Crypto Startup Accelerator, SV Angel, Coinbase Ventures, SALT Fund, Symbolic Capital, Foresight Ventures, and angel investors such as Balaji Srinivasan, Illia Polosukhin, and Sandeep Nailwal.

OpenGradient offers an end-to-end decentralized platform that provides scalable AI computing onchain and supports verifiability and attribution for AI deployment and hosting.

The platform’s technology stack includes an Ethereum Virtual Machine (EVM)-compatible blockchain featuring a proprietary library of tools for AI workflows. The startup plans to use the funds to expand its decentralized infrastructure, deploy new solutions and tools for developers, and push forward applied machine learning research. Its testnet is scheduled to debut by the end of 2024.

Related: Hack VC raises $150M to back crypto and AI startups

Apex Fusion secures $6M in private token sale led by TRGC

Federated multichain network Apex Fusion has completed its first private token sale, raising $6 million and reportedly bringing the network’s valuation to $180 million. Investment firm TRGC led the sale.

The funds are earmarked to support Apex Fusion’s market entry and further development of its federated layer-1 multichain network, which launched its testnet in August. Apex Fusion integrates isolated UTXO and account-based networks, offering a unified blockchain solution. Its structure includes three chains: Prime, Nexus, and Vector, which facilitate a blend of UTXO and EVM transactions in a unified and decentralized environment. 

PiP World raises $10M seed funding for Web3 gaming, edtech platform

PiP World has raised $10 million in seed funding from global fintech Exinity to advance its offerings of financial education through gaming. The startup describes itself as the ‘Duolingo of crypto,’ blending gameplay with personalized learning on financial markets, including decentralized finance.

Its ecosystem features applications including PiP Trader, a AAA strategy management simulator game for building trading portfolios; PiP World’s Gold Rush, a Telegram tap-to-earn game; PiP Academy, a gamified app that simplifies financial concepts; and StockRise, Roblox’s top-grossing stock simulator.

The funding will support PiP World’s platform and address the global gap in financial literacy. 

Lombard secures investment from Binance Labs for Bitcoin DeFi 

Lombard, the developer of Bitcoin liquid staked token LBTC, has received an undisclosed investment from Binance Labs to advance its integration within decentralized finance (DeFi).

LBTC allows users to earn yields on their Bitcoin (BTC) and leverage these assets in DeFi environments.

According to an announcement, it has captured 40% of the Bitcoin LST market since its launch, with a total value locked (TVL) of over $500 million across more than 12,500 users.

Currently in phase 2 of its roadmap, Lombard is working on integrating LBTC with Ethereum DeFi protocols, with plans to extend to multiple layer-2 and layer-1 networks in Phase 3. Lombard is the largest contributor to Babylon, with over 7,100 BTC delegated.

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