Blockchain-based startups are still managing to secure funding despite the ongoing bear market in the crypto industry. Blockaid, a partner of MetaMask, raised $33 million in October, showcasing the continued interest and investment in blockchain projects. However, overall funding in the crypto industry has dropped to levels last seen in 2020, with $2.1 billion raised over 297 deals in the third quarter of 2023.
During bear markets, investors tend to scrutinize projects more closely before investing and look for tangible real-world applications. This trend is reflected in the recent discussions surrounding the potential applications of blockchain technology. The Nature Science Journal praised decentralized autonomous organizations (DAOs) for their potential to support underfunded scientific research.
In October, several projects raised significant capital. London-based fintech Untangled Finance secured $13.5 million to bring institutional-grade credit with a built-in liquidation mechanism on-chain. The lead investor in the round was Fasanara Capital. Untangled Finance’s protocol focuses on tokenizing real-world private credit assets, such as invoices and SME loans, into on-chain structured credit pools. These pools facilitate the issuance of collateralized debt notes to both DeFi and traditional finance investors.
Nocturne, a protocol enabling on-chain private accounts, announced a $6 million seed funding round co-led by Bain Capital Crypto and Polychain Capital. Other notable investors include Vitalik Buterin and members of the Ethereum community. Nocturne combines stealth addresses, zero-knowledge proofs, and account abstraction to enable private accounts on public blockchains. The funding will accelerate the production and deployment of Nocturne’s protocol across various ecosystems.
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Account Labs, a web3 wallet provider, raised $7.7 million from lead investors Amber Group, MixMarvel DAO Ventures, and Qiming Ventures. The company also launched its first consumer-facing app, UniPass Wallet, on Polygon. UniPass Wallet leverages account abstraction to allow users to create and access a self-custody web3 wallet with only a Google account. Users can also top up their wallets with any Mastercard or Visa card. Account Labs aims to address the demand for stablecoin transactions in the Southeast Asia region.
Rymedi, a blockchain-based healthcare data exchange platform, announced a Series A round of $9 million led by RW3 Ventures and White Star Capital. The funds will be used to enhance data security and healthcare record accessibility for patients. Rymedi currently serves over 1 million patients in over 1,200 locations across the United States, Africa, and Australia. Pete Najarian, managing partner of RW3 Ventures, expressed their interest in supporting teams that use blockchain technology to solve real-world problems.
Waterfall Network, a layer-1 protocol, raised $2 million ahead of its mainnet launch expected in the first quarter of 2024. Infrastructure provider Bytrade Lab led the funding round. Waterfall Network is Ethereum Virtual Machine (EVM) compatible and utilizes Directed Acyclic Graph (DAG) technology for unlimited scalability. The protocol is also collaborating with BlueWave Corporation to develop its smart contract platform.
Despite the bear market in the crypto industry, these projects demonstrate that there is still significant interest and investment in blockchain-based startups. Investors are looking for projects with real-world applications and potential for growth. These funding rounds provide the necessary capital for these startups to develop and scale their solutions, showcasing the ongoing potential of blockchain technology.
