VC Roundup: Web3 funding hits $5.4B in 2024

Web3 startups have raised over $5.4 billion in venture capital during the first three quarters of 2024, according to data from Crunchbase’s Web3 tracker.

Capital poured into blockchain-based companies stood at $1.4 billion in the last quarter alone. 

Investors are increasingly targeting emerging markets at the intersection of blockchain and artificial intelligence, while projects focused on decentralized blockchain infrastructure have also drawn substantial capital flow recently.

October’s funding highlights include Glow’s $30 million raise to develop a decentralized solar grid and the Nillion Network’s $25 million funding round to advance its decentralized privacy platform.

Venture capital firms are gearing up for 2025, announcing new funds with a focus on Web3. Gate Ventures and Boon Ventures recently partnered with Movement Labs to launch a $20 million fund dedicated to Web3 startups, while Dragonfly Capital is in the process of raising $500 million for its fourth crypto fund.

This edition of Cointelegraph’s VC Roundup features some of the startups that raised capital in late October.

Binance Labs invests in gamified fitness app Moonwalk

Binance Labs has invested an undisclosed amount in Moonwalk Fitness, a fitness accountability app that combines gamification and financial incentives for healthier lifestyles.

The app offers gamified fitness challenges where users can earn rewards by meeting daily step goals. Users stake USD Coin (USDC), Solana (SOL), or Bonk (BONK) and must reach their crew’s step target or keep pace with the leader’s best performance, risking a portion of their stake if they fall short. Moonwalk Fitness is built on the Solana blockchain. The funding will accelerate the product development of its iOS and Android app. 

Craftt raises $2M for decentralized benefits

Craftt, a platform built on decentralized infrastructure for workforce benefits, has successfully closed $2 million in seed funding led by Superscrypt and DCG, with participation from other angel investors.

Aiming to provide universal benefits like healthcare and financial support, Craftt enables freelancers, consultants, and creators to access resources traditionally reserved for full-time employees. By using network economics and verifiable “self-sovereign” credentials, the startup enables global payments and provides universal benefits to independent professionals. The funds will accelerate the development of Craftt’s decentralized infrastructure and community-building efforts.

Borderless.xyz secures $3M pre-seed for stablecoin payment network

Global payments infrastructure company Borderless.xyz has raised $3 million in pre-seed funding led by Amity Ventures. The company aims to build a modern global stablecoin payment network, utilizing its Global Transfer Protocol (GTP) to bridge stablecoins and real-world assets (RWAs) with local fiat currencies across more than 50 countries and 23 currencies.

The network seeks to provide real-time, low-cost settlements for cross-border transactions, payouts, collections, on-ramps, and off-ramps. The funding will accelerate the development of Borderless.xyz’s infrastructure. 

Vixichain raises $7M to bridge TradFi with blockchain compliance-focused infrastructure  

Layer-1 blockchain Vixichain has raised $7 million through a private funding round aiming to address traditional finance’s compliance demands toward public blockchains. The funding will drive Vixichain’s R&D expansion, strategic partnerships with financial institutions, and its DevNet and mainnet launches.

Vixichain’s onboards banks as network validators to earn transaction fees, incentivizing their participation. The platform also features a “non-fungible stable token” (NUSD), a fiat-backed token that bridges Vixichain’s private network with the broader Web3 ecosystem.

karpatkey secures $7M to expand treasury solutions for DAOs, financial institutions  

karpatkey, an onchain treasury management platform for decentralized autonomous organizations (DAOs) and financial institutions, has raised $7 million in a funding round backed by over 40 angel investors and venture capital firms, including AppWorks Ventures and Wintermute Ventures. Popular figures from the crypto industry, such as Consensys’s Joe Lubin, joined the round.

The investment will enable karpatkey to extend its treasury management services to more DAOs and pursue traditional finance partnerships. Initially established in 2020 to manage Gnosis’s treasury, karpatkey now oversees $1.8 billion in assets and provides services from risk management to M&A support. 

Axal secures $2.5M pre-seed to build agents network for Web3 tasks

New York-based Web3 automation startup Axal has raised $2.5 million in a pre-seed funding round led by CMT Digital, with contributions from Escape Velocity, Blockchain Builders Fund, Artichoke Capital, and others. Founded by Harvard computer science graduate Ashlan Ahmed, Axal employs autonomous agents to automate complex onchain workflows for crypto companies.

Axal’s first product, Axal Autopilot, is set to launch in November, assisting traders with onchain workflows with ambitions to create a “ChatGPT for tasks,” automating a vast range of Web3 tasks.

Variational raises $10.3M seed funding for P2P trading for crypto derivatives  

Variational, a protocol for peer-to-peer trading in customizable crypto derivatives, has raised $10.3 million in seed funding round co-led by Bain Capital Crypto and Sequoia Capital, with participation from Coinbase Ventures, Dragonfly Capital, and other investors.

The protocol automates trading and clearing through onchain settlement pools, a low-latency pricing oracle, and liquidation and funding rate engines, supporting trading of perpetuals, futures, and options.

Variational’s first application, Omni, is a retail platform for permissionless perp trading, enabling leveraged positions on various time series, including new tokens, baskets, and volatility products. Currently in testnet on Arbitrum Sepolia, Omni will also be available on Arbitrum One with its mainnet.