The crypto industry may be experiencing a bear market, but blockchain-based startups are still managing to secure funding. One such example is MetaMask partner Blockaid, which raised an impressive $33 million in October. However, despite these individual success stories, the overall funding in the crypto industry has dropped to levels last seen in 2020. According to Messari, the industry amassed $2.1 billion over 297 deals in the third quarter of 2023. This decline in funding levels can be attributed to investors taking a more cautious approach during bear markets, carefully analyzing projects and seeking tangible real-world applications.
In October, the Nature Science Journal published an article discussing the applications of blockchain technology in scientific research. One area that was praised in particular was decentralized autonomous organizations (DAOs) and their potential to support underfunded scientific research. DAOs enable efficient and transparent funding of research projects, providing opportunities for researchers to access the necessary resources to advance their work. This recognition further underscores the potential impact of blockchain technology in various industries beyond finance.
Untangled Finance, a London-based fintech firm, raised $13.5 million in funding to accelerate its efforts in bringing institutional-grade credit to the decentralized finance (DeFi) space. The funding round was led by Fasanara Capital. Untangled Finance’s protocol 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 traditional finance (TradFi) investors. The company sees the most utility for DeFi in private credit markets and plans to access over 130 verified asset originators spanning 60 countries with the raised funds.
Nocturne, a protocol enabling on-chain private accounts, announced a $6 million seed funding round led by Bain Capital Crypto and Polychain Capital. Notably, Vitalik Buterin and other members of the Ethereum community also participated in the funding round. Nocturne’s solution combines stealth addresses, zero-knowledge proofs, and account abstraction to enable private accounts on public blockchains. The funding will accelerate the production and deployment of Nocturne’s protocol across various ecosystems. Additionally, a portion of the funds will be allocated to legal work as the team adapts to changing regulatory requirements.
Account Labs, a web3 wallet provider, raised $7.7 million in funding from lead investors such as Amber Group, MixMarvel DAO Ventures, and Qiming Ventures. The funding news coincided with the launch of the company’s first consumer-facing app, UniPass Wallet, on the Polygon network. UniPass Wallet leverages account abstraction, allowing users to create and access a self-custody web3 wallet with only a Google account and top up with any Mastercard or Visa card. Account Labs aims to address the growing demand for stablecoin transactions in the Southeast Asia region, where it sees significant potential for blockchain adoption.
Rymedi, a blockchain-based healthcare data exchange platform, secured $9 million in a Series A funding round. RW3 Ventures and White Star Capital co-led the round, with participation from Blockchange Ventures, Avalanche’s Blizzard Fund, and strategic angel investors from the healthcare industry. Rymedi claims to serve over 1 million patients in more than 1,200 locations across the United States, Africa, and Australia. The funds raised will be used to enhance data security and improve accessibility to healthcare records for patients. This investment reflects the growing recognition of blockchain technology’s potential to revolutionize the healthcare industry by facilitating secure and efficient data exchange.
Waterfall Network, a layer-1 protocol, raised $2 million ahead of its mainnet launch expected in the first quarter of 2024. Bytrade Lab, an infrastructure provider, led the funding round. Bytrade Lab became a key investor and user of Waterfall Network after successfully trialing its tech infrastructure for six months. The protocol is Ethereum Virtual Machine (EVM) compatible and utilizes Directed Acyclic Graphs (DAG), which allegedly allows for unlimited scalability. Waterfall Network is also collaborating with BlueWave Corporation to develop its smart contract platform, further expanding its capabilities and potential use cases.
Despite the overall decline in funding levels in the crypto industry, blockchain-based startups are not deterred. They continue to secure funding by showcasing real-world applications of blockchain technology across various sectors. From supporting scientific research to revolutionizing healthcare data exchange and bringing institutional-grade credit to DeFi, these startups are making a significant impact. As blockchain adoption increases, we can expect more innovative projects to emerge, fueling further growth and investment opportunities in the space.