Venture Capitalists Bring Liquidity to Crypto Startups: Grants and Node Sales on the Rise
Venture capitalists are making a strong comeback in the crypto space, providing much-needed liquidity for alternative funding methods for startups. This resurgence is opening up new opportunities for projects to secure funding through grants and node sales.
One such example is the base-native lending platform Seamless, which has partnered with layer-3 Degen Chain and semi-fungible token protocol Pandora to distribute nearly $600,000 in grants to creators and developers building on Base. The initiative aims to support developers interested in building within Farcaster and Degen Chain, as well as creators interested in ERC-404 technology for their collections and memecoins.
According to Ras, a member of the Seamless Community Grants Program, the grants will be evaluated by community members, emphasizing the importance of having a clear vision for how the funding will uplift the relevant ecosystems. The program is encouraging innovative and useful ideas from applicants, who can submit their proposals through the Community Governance forum.
In addition to grants, the crypto funding landscape is also seeing a positive shift for startups. Investment in crypto firms rose by 38% in the first quarter of 2024, with a 49% increase in the number of projects receiving funding. March alone saw over $1.1 billion invested across 180 crypto-related projects, primarily directed towards infrastructure and decentralized finance projects.
Recent highlights include Paradigm leading a $225 million round on layer-1 protocol Monad Labs, and Auradine completing a Series B funding worth $80 million. The funding environment for crypto startups is becoming more welcoming, with a growing number of projects securing capital to fuel their growth and development.
As the crypto industry continues to evolve and attract more investment, opportunities for startups to secure funding through grants, node sales, and traditional venture capital are on the rise. The future looks bright for innovative projects looking to make their mark in the crypto space.