Funding Wrap: A Quiet Q3 for Crypto VC Investment

Venture capital firms invested $5.5 billion into crypto startups this quarter, according to the latest Galaxy Digital report


Blockworks exclusive art by axel rangel


key takeaways

  • Investments are still higher this year than the seven-year average
  • Blockchain development platform Tatum received $41.5 million to scale its tooling system

Crypto venture capital funding dropped in the third quarter.

Only $5.5 billion was invested in crypto startups from July through September, according to a new Galaxy report — marking the lowest quarter for investments this year. 

The figure is still higher than the seven-year quarterly average of $3.1 billion, which takes into account the significantly smaller investment universe in the early days of digital assets.

This week, the Celo ecosystem, a protocol which supports mobile-first DeFi payments infrastructure, revealed that projects on its platform have secured over $77 million in funding. Company valuations were not revealed.

Among them, blockchain development platform Tatum secured the most significant amount — $41.5 million — and will be using the latest fundraise to integrate their tooling system with Web3 projects.

Interchain communication protocol Hyperlane also raised a significant amount of capital — $18.5 million from venture capital fund Variant to promote cross-chain communication and interoperable security. 

Regenerative finance project Loam, working to develop a data farming marketplace, raised $4 million

“I am immensely proud of our ecosystem projects in raising over $77 million across various venture rounds,” Rene Reinsberg, Celo co-founder and Celo Foundation President, said. “This demonstrates how bullish investor sentiment is in driving mainstream adoption of Web3 and real-world use cases for real people.” 

Other projects that received funding this week include Fun — a company building decentralized wallet and access control solutions on Odsy Network. 

Fun raised a total of $3.9 million in its pre-seed funding round led by Tinder co-founder Justin Mateen’s JAM Fund with an unknown valuation. 

Another pre-seed project which received venture capital interest this week was Web3 wallet Martian.

Martian, a wallet built on the Aptos blockchain, allows users to access decentralized applications on the network to buy, swap, swell tokens and collect NFTs. 

The company secured $3 million in a funding round led by Race Capital, with participation from FTX Ventures, Superscrypt, Jump Capital and Aptos. 

Other funding rounds this week include:

  • Web3 powered newsletter Paragraph lands $1.7 million from Binance Labs.
  • Singaporean based NFT wallet AWSt secures $1.7 million from early-stage venture fund and seed accelerator 500 Global.

Don’t miss the next big story – join our free daily newsletter.


Upcoming Events

Hilton Metropole | 225 Edgware Rd, London

Mon - Wed, March 18 - 20, 2024

Crypto’s premier institutional conference returns to London in March 2024. The DAS: London Experience: Attend expert-led panel discussions and fireside chats Hear the latest developments regarding the crypto and digital asset regulatory environment directly from policymakers and experts.

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

Research report - cover graphics (1).jpg


In this report, we dive into crypto private market data to gather insights on where the future of the industry is headed. Despite a notable downturn in private raises, capital continues to infuse promising projects that aim to transform payments, banking, consumer experiences, community, and more, with 2023 being the fourth-largest year for crypto venture capital.


Revolut said that the standalone crypto exchange is currently “invite only”


The stock price jump comes after Coinbase reported ending its seven-quarter run of net losses during the fourth quarter


BUZZ holds shares of Coinbase, Robinhood and MicroStrategy


Opinion: Even though I didn’t pay for my “Diamond Hands” burger with BTC, don’t let that fool you into thinking that crypto’s development is futile


The results mark “a major positive inflection point,” one analyst says, as the exchange carries net income momentum into a crypto rally


While the slate of 10 US spot bitcoin funds have tallied $4.6 billion of net inflows thus far, half of the field is lagging the leaders