November Web3 Funding Recap: Total Funding Reaches $2.1 Billion, AI Sector Emerges as the Biggest Winner

Original Article Title: November 2024: Web3 Fundraising Snapshot

Original Article Author: Cheeky Rolo

Original Article Translation: Deep Tide TechFlow

Comment from @cheeky_rolo:

In last month's Web3 fundraising snapshot, I mentioned that Venture Capitalists (VCs) usually "scale back operational activities" in the last two months of the year. Looking back at that statement, I feel that I may not have accurately conveyed my meaning. "Scale back operational activities" can be interpreted in two ways:

1. It may imply that the year-end is very busy, focusing on dealing with long-pending transactions to make work clearer and more organized at the start of the new year;

2. It may also mean a reduction in workload, with a more relaxed pace.

According to Carta's data, November and December are actually the busiest months of the year in terms of transaction volume, busier than most other months. However, this trend does not seem to apply to the Web3 space. From the data we have, Web3 venture capital does not exhibit a similar end-of-year behavior of completing transactions. Specifically for November 2024, we did not see a significant increase in transaction volume. I will explore this further in future articles.

Additionally, the data for November 2024 also indicates that cryptocurrency market volatility does not have a direct impact on early-stage startup funding. As mentioned in previous months, following Bitcoin's All-Time High (ATH), there tends to be a significant lag in the inflow of venture capital funds. The performance in November 2024 has been relatively lackluster, and I do not expect much improvement by the end of the year.

Web3 Market Overview: Financing Status of Companies at Various Stages Since 2018

Source: Messari. The data is updated monthly, and there may be slight adjustments to previous months' data (e.g., inclusion of previously unreported funding activities, or removal of duplicate records, etc.).

Key Data for November 2024:

· The disclosed total funding amount is $2.1 billion, distributed across 106 projects, showing only a slight decrease compared to the previous month.

The total number of transactions is 156, only half of the total transactions in October 2024. Based on this, we can estimate that the total funding amount for all stages is approximately $31 billion.

· Year-to-date in 2024, the disclosed total funding amount is $15.8 billion, involving 1,927 projects.

The total number of transactions is 3,033, with an expected total annual funding amount of $25.4 billion.

Crypto Venture Capital Fund Launches Since 2022:

Two funds launched, raising a total of $215 million:

· Portal VC launched a $75 million fund: exclusively investing in a single founder in each category, focusing on Bitcoin programmability, decentralized physical infrastructure network (DePIN), and Maximally Extractable Value (MEV) business models.

· Accolade Partners raised $135 million through two investment vehicles.

Seed Pre-Stage Web3 Funding Data Since 2018

· The disclosed funding amount is $36 million, distributed across 13 seed pre-stage funding activities.

The total number of transactions is 13, lower than the 18 transactions in October 2024.

· The average funding size for this month's seed pre-stage is $2.7 million.

Since 2018, the average funding size for seed pre-stage companies has been $1.6 million.

Market Highlights for This Month:

· vlayer secured a $10 million seed pre-funding round, backed by top-tier VCs and industry builders, significant for the Web3 ecosystem as it addresses a key challenge of Web3: connecting blockchain with real-world systems through verifiable data.

· vlayer introduced four groundbreaking Solidity functions—Time Travel, Teleport, zkTLS (Web Proof), and zkEmail (Email Proof)—enhancing Ethereum's capabilities, enabling smart contracts to seamlessly interact with on-chain and off-chain data. By leveraging advanced encryption technologies like Zero Knowledge Proofs (ZKPs) and Multi-Party Computations (MPC), vlayer aims to make decentralized applications (dApps) more robust, scalable, and impactful, paving the way for broader adoption and real-world applications.

Seed Round Web3 Funding Data Since 2018

· In November 2024, the total amount raised in seed rounds was $189 million, a decrease of 11% from the previous month, involving 27 seed-stage companies (disclosed).

The total number of transactions was 33, down from 43 in October; the total seed round funding for this month is estimated to be around $231 million.

· The average funding amount for seed rounds this month was $7 million.

Since 2018, the average funding amount for seed round companies has been $4.6 million.

Key Market Highlights This Month:

· 0G Labs completed a total of $290 million in funding, including $40 million in seed round funding and a $250 million token purchase commitment. This milestone funding marks the accelerated development of the convergence of blockchain and AI, bringing a significant breakthrough to the Web3 ecosystem.

· 0G Labs is developing a decentralized AI Operating System (dAIOS), combining scalability, privacy, and verifiability, aiming to redefine AI as a public good, making it more inclusive and censorship-resistant. Its technical innovations include a data availability layer supporting data processing speeds of up to 50GB/s and a decentralized AI service marketplace that greatly enhances the efficiency of AI and blockchain integration. This funding not only addresses critical bottlenecks in current AI and blockchain integration but also demonstrates investors' high confidence in decentralized AI solutions. With this breakthrough, 0G Labs is poised to become a leader in the next wave of Web3 innovation.

Series A Round Web3 Funding Data Since 2018

· In November 2024, the total amount raised in Series A rounds was $69.5 million, involving 6 Series A stage companies (disclosed).

· The average funding amount for Series A rounds this month was $11.5 million.

Since 2018, the average funding amount for Series A companies has been $17.5 million.

Key Market Highlights This Month:

· Monkey Tilt has completed a $30 million Series A funding round, reflecting the growing trend of the integration of entertainment, gaming, and Web3 technology, while showcasing the potential of blockchain technology platforms to reshape traditional industries.

· The Monkey Tilt platform, through integrating a multi-currency crypto payment system, immersive social features, and collaborations with culturally relevant brands and influencers, is redefining online gambling as a more interactive and community-driven experience. The platform focuses on combining traditional casino games, sports betting, and cryptocurrency technology, demonstrating how Web3 is opening up new use cases for the entertainment industry and attracting mainstream audiences. In this way, Monkey Tilt is not only advancing the adoption of decentralized technology but also injecting a fresh vitality into the entertainment industry.

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