A lot has happened in the Bitcoin (BTC) and cryptocurrency markets since the last edition of VC Roundup. The massive collapse of the Terra ecosystem spilled over into other parts of the digital asset market, exposing overly leveraged traders, lending platforms and venture capital funds. In the process, Bitcoin’s price plunged to new lows, breaking below the high of the previous cycle for the first time in its history.
Despite the macro headwinds wreaking havoc on the crypto markets, venture capital firms are still investing in the industry’s most promising startups. The latest edition of the VC Roundup highlights financing deals for digital asset infrastructure providers, surveillance-free crypto protocols, payment solutions and decentralized identity management companies.
Digital asset infrastructure provider closes $53 million round
PolySign’s pursuit of providing institutional-grade crypto custody solutions to investors has garnered support from several venture capital firms. The company recently raised $53 million in Series C funding backed by Cowen Digital, Brevan Howard, GSR and more. Additionally, the company secured a $25 million loan facility from venture firm Boathouse Capital. While PolySign did not specify how the funding will be allocated, Series C was shut down at the same time the company acquired digital asset fund manager MG Stover.
Related: Goldman Sachs Downgrades Coinbase Shares to ‘Sell’
Bitcoin startup raises funds to monetize the creative economy
Bitcoin and Lightning Network payment platform Mash raised $6 million in seed funding in June as part of its ongoing efforts to make money online for developers and creators. The funding round was co-led by Nic Carter’s Castle Island Ventures and Whitecap Venture Partners, with additional participation from Maple VC, Strategic Cyber Ventures, Aquanow and Spacecadet Ventures. The Mash platform allows developers and creators to offer customers “pay-as-you-go” pricing options powered by BTC and the Lightning Network.
NFT app Floor raises $8M
Failed token app Floor has closed an $8 million Series A funding round to further its mission to make NFTs more accessible to mainstream users. The funding round was led by 6thMan Ventures with additional participation from B Capital, Worklife Ventures, Collab+Currency, Crypto.com and others. Floor said it will use the funding to accelerate development and make NFTs more useful.
New crypto projects often rely on Venture Capital firms to help them get off the ground.
The real question is, are VCs for the community and foundations or for their own self-interest?
— TBEN (@TBEN) 8 July 2022
Euler gets huge support
Non-custodial crypto protocol Euler has closed a $32 million funding round led by Haun Ventures, with participation from FTX Ventures, Coinbase Ventures, Jump Crypto, Jane Street, Uniswap Labs, and others. The funding will be injected into the coffers of Euler’s Decentralized Autonomous Organization, or DAO, which is rolled out in three phases. Euler is a decentralized funds protocol built on Ethereum that allows users to lend and borrow crypto assets.
“Web5” and Decentralized Identity Intrigues VC
Decentralized identity protocol Trinsic recently closed an initial round of $8.5 million to continue building user-verified identity products. A company spokesperson said Trinsic’s products provide real benefit to Jack Dorsey’s “Web5” ambitions. The former Twitter CEO, who is a vocal critic of Web3, announced in June that he is skipping the Internet’s third iteration in favor of “Web5,” a new Bitcoin-centric identity management model.
Related: VC Brief: The Rise of Blockchain Games, DAO Management and Asset Tokenization
KYVE closes $9M raise ahead of mainnet launch
Web3 archiving protocol KYVE has raised $9 million ahead of its mainnet launch scheduled for Q4 2022. The round of funding, which will include Distributed Global, Wicklow Capital, IOSG Ventures, Blockchain Coinvestors, Huobi Incurabor, and others, will be used to integrate more ecosystems into KYVE’s so-called decentralized data lake. Many blockchains are currently using KYVE, including Avalanche, Zilliqa, Cosmos, and Polkadot.
No one thought that 2022 would bring this.
Check out the latest moves in crypto and business at Crypto Biz. https://t.co/gEIx0PTxXq
— TBEN (@TBEN) July 2, 2022
Atmos Labs Focuses on Seeds Growing Metaverse Spores
Play to win developer Atmos Labs has closed an $11 million startup round to continue creating Metaverse-focused sports games. The investment round was led by NFT-focused venture firm Sfermion, with additional participation from Animoca Brands, Collab+Currency, FBG Capital, CoinGecko Ventures and several others. Atmos Labs aims to bring esports to a global audience by creating immersive gameplay on the Metaverse.