Crypto VC funding: Balance brings in $30m, Hypernative collects $16m

Venture capitalists are significantly ramping up their investments in crypto-related funds this year, marking a stark contrast to the downturn experienced last year. According to a recent PitchBook report released on September 5, the median fund size has surged by 65.1%, reaching $41.3 million in 2024.

Crypto-savvy investors are increasingly establishing midsized venture capital funds, typically ranging from $100 million to $500 million. PitchBook Senior Analyst Robert Le noted that these fund sizes are advantageous for supporting industry growth while avoiding the deployment challenges faced by larger funds, making them essential to the current ecosystem.

However, the presence of capital does not equate to risk-taking. Le observed that the time between fundraising and closing funds has lengthened over the past three years, indicating a more challenging fundraising landscape as limited partners (LPs) become more discerning and risk-averse following recent market downturns.

In the second quarter of this year, Galaxy data revealed that VCs invested nearly $3.2 billion in crypto and blockchain-focused companies, reflecting a 28% increase quarter-over-quarter. Nonetheless, this investment was spread over 577 deals, a slight decline of 4% compared to the previous quarter. In the preceding three months, VC investment had increased by 29%, totaling around $2.49 billion across 603 deals.

This week, crypto.news highlighted several startups that recently made headlines for securing funding, with nearly $70 million raised in disclosed venture capital between September 1 and September 7.

Notable Funding Rounds

Balance – $30 million
Gaming platform E-PAL launched Balance, an AI-powered blockchain experience platform, following two successful funding rounds led by Andreessen Horowitz (a16z) and Galaxy Interactive. Other investors included Animoca Brands, K5, CLF Partners, and several others, aiming to build an open, inclusive Web3 ecosystem.

Hypernative – $16 million
Hypernative raised $16 million to enhance its AI-driven web3 security solutions. The Series A round was led by Quantstamp, with participation from various VCs and notable angel investors, bringing its total funding to $27 million.

Puffpaw – $6 million
PuffPaw, a blockchain-based e-cigarette project designed to help users quit smoking by tracking habits and rewarding them with tokens, secured $6 million in seed funding led by Lemniscap Ventures.

TrendX – $5 million
TrendX closed its Series A funding round with $5 million, building on a previous $1 million seed investment to total $6 million.

IDA – $6 million
Hong Kong-based digital asset company IDA raised $6 million in seed funding to launch its fiat-referenced stablecoin, HKDA. The round was led by CMCC Global and Hashed, with participation from several other investors.

CryptoHunter World – $2.8 million
CryptoHunter World completed a $2.8 million private sale to enhance its hybrid gaming service, backed by prominent venture firms.

Additional Fundraising Efforts

Other startups like Blabla, Dropnest, and Vanilla Finance also secured undisclosed amounts through various funding rounds.

Overall, the crypto venture capital landscape is witnessing a notable resurgence, with targeted investments indicating a renewed optimism within the industry despite lingering challenges.