Blockchain Startups Secure Funding Despite Bear Market
Despite the current bear market, blockchain-based startups are still able to secure funding. Blockaid, a partner of MetaMask, raised $33 million in October. However, overall funding in the crypto industry has dropped to levels last seen in 2020. In the third quarter of 2023, there were 297 deals amounting to $2.1 billion in funding, according to Messari. During bear markets, investors tend to scrutinize projects more closely and look for tangible real-world applications.
Untangled Finance Raises $13.5M for Private Credit on-chain
Untangled Finance, a London-based fintech company, has raised $13.5 million to accelerate its efforts in bringing institutional-grade credit with a built-in liquidation mechanism on-chain. The round was led by Fasanara Capital. Untangled Finance 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 TradFi investors. The company plans to access over 130 verified asset originators across 60 countries.
Nocturne Raises $6M Seed Round for Private Accounts on Ethereum
Nocturne, a protocol enabling on-chain private accounts, has announced a $6 million seed funding round co-led by Bain Capital Crypto and Polychain Capital. Vitalik Buterin and other members of the Ethereum community also participated in the round. Nocturne combines stealth addresses, zero-knowledge proofs, and account abstraction to enable private accounts on public blockchains. The funds raised will be used to deploy and further develop private accounts on Ethereum.
Account Labs Secures $7.7M for UniPass Wallet App
Account Labs, a web3 wallet provider, has raised $7.7 million in funding. The round was led by Amber Group, MixMarvel DAO Ventures, and Qiming Ventures. Account Labs has also launched its first consumer-facing app, UniPass Wallet, on Polygon. The app leverages account abstraction to allow users to create and access a self-custody web3 wallet with only a Google account and top up with any Mastercard or Visa card.
Rymedi Raises $9M to Expand Blockchain-based Healthcare Infrastructure
Rymedi, a blockchain-based healthcare data exchange platform, has raised $9 million in a Series A round. RW3 Ventures and White Star Capital co-led the round, with participation from Blockchange Ventures and Avalanche’s Blizzard Fund. Rymedi plans to use the funds to increase data security and healthcare record accessibility for patients. The platform currently serves over 1 million patients in multiple locations worldwide.
Waterfall Secures $2M Funding for Mainnet Launch
Waterfall Network, a layer-1 protocol, has raised $2 million ahead of its mainnet launch in Q1 2024. Bytrade Lab led the funding round after being a key investor and user of Waterfall Network during a six-month trial of its tech infrastructure. The protocol is Ethereum Virtual Machine compatible and utilizes Directed Acyclic Graph (DAG) technology for unlimited scalability. Waterfall is also collaborating with BlueWave Corporation on its smart contract platform.
Hot Take: Blockchain Startups Adapt and Thrive in Challenging Times
Despite the challenges posed by the bear market, blockchain startups are proving their resilience by securing significant funding rounds. These startups are focusing on real-world applications and bringing innovative solutions to various industries such as finance, healthcare, and web3 wallets. The funding they receive demonstrates the continued interest and confidence in blockchain technology. As the market evolves and investors become more selective, only projects with tangible value and strong potential are able to attract significant investments. This adaptability and ability to address real-world problems positions blockchain startups for long-term success in the crypto industry.
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