Balance brings in $30m, Hypernative collects $16m

Venture capitalists are raising much more money for crypto-related funds this year compared to last year’s negative decline.

According to PitchBook’s latest report published on September 5, the average fund size will increase by 65.1% in 2024, reaching $41.3 million.

Today, it’s common for crypto-savvy investors to raise mid-sized crypto VC funds — coffers ranging from $100 million to $500 million. “These funds are large enough to support industry growth but small enough to avoid the distribution challenges faced by megafunds, making them crucial to the existing ecosystem,” writes PitchBook Senior Analyst Robert Le.

But just because the money is there doesn’t mean VCs aren’t being cautious. The time between fundraising and closing has lengthened over the past three years, according to Le.

“This trend heralds a challenging fundraising environment ahead as LPs become more selective and risk-averse following recent market declines,” Le adds.

It’s worth noting that in the second quarter of this year, Galaxy data showed that VCs invested just under $3.2 billion in crypto and blockchain-focused companies (up 28% from the previous quarter). However, that money was allocated across 577 deals — down 4% from the previous quarter. In the previous three-month period, VC investment in crypto and blockchain startups increased by 29% from the previous quarter, reaching approximately $2.49 billion across 603 deals.

In this week’s column, crypto.news highlights some of the startups that have been making headlines in recent days. According to crypto fundraising tracker Crypto Fundraising, these companies have raised nearly $70 million in VC funding announced between Sept. 1 and Sept. 7.

Balance, $30M Following two successful funding rounds led by gaming platform E-PAL, Andreessen Horowitz (a16z), and Galaxy Interactive, the company has introduced Balance, a new AI-powered blockchain experience platform. Animoca Brands, K5, CLF Partners, MK Capital, Heights Fund, AMBER, MarbleX, Mantra, Tuna, Aptos Labs, IOBC, Leland Ventures, Halon, Uphonest, Taisu Ventures, Gate Labs, DWF Ventures, BING, and WAGMI also contributed a total of $30M. Proceeds will go towards developing Balance, an “open, inclusive, and equitable Web3 ecosystem.” Hypernative, $16M Known for developing early detection web3 security solutions, Hypernative has raised $16M to accelerate the adoption of AI-powered security products. Investors in the Series A led by Quantstamp include Bloccelerate VC, Boldstart Ventures, Borderless Capital, CMT Digital, IBI Tech Fund, Knollwood Investment Advisory, Re7 Capital, and some notable angel investors. This brings the total amount Hypernative has raised to $27 million. The startup had previously raised $9 million from Boldstart and IBI. Puffpaw, $6 million PuffPaw, a blockchain-based e-cigarette project, has raised $6 million in seed funding led by Lemniscap Ventures. The project is aimed at users who want to quit smoking. It records their smoking habits and rewards them with tokens. TrendX, $5 million TrendX has successfully closed its Series A funding round, raising $5 million. AHZ, Promontory, Coinstash, Frontier Research, Coresky, Tido Capital, and Bullperks The startup had previously raised $1 million in seed funding, bringing its total to $6 million. IDA, $6M IDA, a Hong Kong-based digital asset firm, has secured $6M in a seed funding round led by Titan Fund and CMCC Global under Hashed. The company aims to launch its “first fiat-referenced stablecoin,” called HKDA, designed to be regulated in Hong Kong. Hack VC, Anagram, GSR, Protagonist, Brinc, Chorus One, Kenetic, SNZ, and Yolo Investments also participated in the fundraising effort. Solana co-founder Raj Gokal is one of the backers. CryptoHunter World, $2.8M CryptoHunter World, a hybrid gaming service, has closed a $2.8M private placement round. The fundraising, which is backed by leading venture capital firms including IOST, HG Ventures, Mindfulness Capital, Bigcandle Capital, Web3Wave, and Layer-OTC, will help propel the blockchain-based collectible role-playing game into the web 3.0 space. Additional funding rounds: undisclosed amounts Blabla Arris Dropnest Cycle Network Vanilla Finance Yooldoo Uxlink Kroma Pencils Protocol

To read last week’s edition of our “Crypto VC” column, click here.