In the dynamic landscape of web3 technology, the second quarter of 2024 has kicked off with resounding vigor, as evidenced by a staggering $2.6 billion influx of funding. This robust start not only underscores the resurgence of interest in cryptocurrency but also highlights the growing prominence of blockchain-based ventures.

Key players like Bitkraft Ventures and A16z are leading the charge, channeling substantial investments into early-stage gaming projects. Additionally, notable raises by Xion, Ellipsis Labs, Zeus, and Raiinmaker underscore the diverse avenues of innovation within web3, from consumer-friendly blockchain solutions to decentralized AI training tools. 

As the sector continues to evolve, this surge in funding signals a promising trajectory for web3 ventures, driven by advancements in gaming, blockchain, and AI technologies. In this article, we will cover six examples of recent funding from the last month - highlighting how the recent influx of capital is indicative of renewed investor confidence in web3, signaling a robust start for 2024.

Over $2.6 Billion

As the Bitcoin rally continues to captivate crypto enthusiasts, recent funding developments offer further evidence of renewed interest in the space. Kicking things off, the fourth quarter of 2023 witnessed a notable return of web3 venture capitalists. Now, this March has seen a staggering influx of over $1 billion in web3 funding, as reported by RootData, culminating in a total of $2.6 billion by the quarter's end, mirroring the figures from Q4, 2023. 

The momentum carries into the second quarter of 2024, with Bitkraft Ventures spearheading the charge by unveiling a $275 million third fund dedicated to nurturing early-stage gaming startups. Concurrently, A16z has initiated the third iteration of its SPEEDRUN Accelerator, earmarking $30 million specifically for the gaming sector. Let's dive into some examples.

(1) Bitkraft Ventures 

Bitkraft Ventures Secures $275 Million Funding Round to Invest in Early-Stage Gaming Projects

Bitkraft Ventures, a prominent player in the gaming startup investment space, has secured a substantial $275 million funding round for its third fund. Targeting early-stage gaming projects, Bitkraft Ventures aims to support initiatives at the Seed and Series A stages of fundraising.

Jens Hilgers, Bitkraft’s founding general partner, emphasized the firm's continued focus on web3 gaming, citing advancements in foundational technologies such as digital asset ownership and transaction speed. You can read more about the new fund on our website here.

(2) A16z Accelerator

A16z Opens Application for Third Cohort of Its SPEEDRUN Accelerator

Similarly, A16z has opened applications for the third cohort of its SPEEDRUN Accelerator, allocating $30 million specifically for gaming startups. The accelerator program seeks to support early-stage ventures in areas including AI, VR/AR, and web3 games.

Selected projects will receive $750,000 each, along with access to mentorship from industry-leading gaming advisers and investors, underlining A16z's commitment to fostering innovation in the gaming sector. You can read more about how to apply. to the SPEEDRUN Accelerator on our website here.

(3) Xion

Consumer-Focused Blockchain Abstraction Layer Xion Bags $25 Million

Beyond gaming, notable funding rounds include Xion's successful raise of $25 million. Backed by prominent investors such as Animoca Brands and Nomura’s Laser Digital, Xion aims to simplify the development of highly scalable consumer-friendly apps on blockchains.

The platform offers a consumer-focused blockchain abstraction layer, enabling developers to build, launch, and scale web3 products seamlessly. You can read more about the substantial $25 Million raised and how it will impact the industry in an article on our website here.

(4) Ellipsis Labs

Paradigm Leads $20 Million Series A Round for Ellipsis Labs

Ellipsis Labs has also secured a significant $20 million Series A round led by Paradigm. The decentralized exchange platform Phoenix, developed by Ellipsis Labs, stands as the largest DEX on Solana in terms of liquidity. With a focus on platform-based opportunities, Ellipsis Labs plans to expand its engineering team to create a robust financial ecosystem on high-throughput blockchains.

(5) Zeus

Mechanism Led an $8 Million Seed Round for Solana-Based Interoperability Layer Zeus

Zeus, a Solana-based interoperability layer, raised $8 million in a seed round led by Mechanism. The fundraising, conducted via a simple agreement for future equity, valued the company at $100 million. 

(6) Raiinmaker

AI Firm Raiinmaker Closed $7.5 Million Seed Round Co-Led by Jump Capital and Cypher Capital

Raiinmaker, an AI firm, closed a $7.5 million seed round co-led by Jump Capital and Cypher Capital. The company offers decentralized AI training tools, capitalizing on the convergence of performant blockchain infrastructure and the crypto market bull run.

Final Thoughts

Overall, the surge in web3 funding at the outset of Q2 2024 reflects a growing appetite for innovative projects in gaming, blockchain, and AI. With key players like Bitkraft Ventures and A16z leading the charge, coupled with the emergence of promising startups like Xion, Ellipsis Labs, Zeus, and Raiinmaker, the stage is set for continued growth and innovation in the web3 space throughout the year.