August Web3 Funding Review: 118 Projects Raised $1.4 Billion, with an Average Pre-Seed Funding of $2.7 Million

Original title: August 2024 Snapshot

Original author: Cheeky Rolo

Original translation: TechFlow

Market Overview: Financing Dynamics of Companies at Each Stage Since 2018

Source: Messari, Fundraising of Projects at Each Stage from January 2018 to August 2024

Note: Disclosure and Total Transaction Quantity: About 25% of the projects did not disclose basic information such as the amount of funds raised. "Transaction Quantity (Total)" includes both disclosed and undisclosed projects.

Key stats for August 2024:

· In August 2024, 118 projects (disclosed) raised $1.4 billion, down 4% from the previous month.

· The total number of deals was 182, also down 4%, with an estimated $2.1 billion raised.

· So far in 2024, 1,485 projects (disclosed) have raised a total of $10.3 billion.

· The total number of deals was 2,225, with an estimated $15.4 billion raised so far in 2024.

Market Highlights of the Month:

Story Protocol successfully raised $80 million in Series B funding, led by Andreessen Horowitz. Story Protocol solves the key issues of intellectual property protection and monetization in the AI era through Blockchain technology. It allows creators to embed licensing and royalty terms directly into their intellectual property, ensuring that AI systems are compensated accordingly when using their content. This transparent, programmable and decentralized solution provides an important infrastructure for protecting original content. This move not only promotes technological innovation in Web3, but also provides effective solutions to real-world problems in the creative industry.

Crypto venture capital funds established since 2022

Since January 2022, crypto funds focusing on early Web3 startups have been established

In August 2024, 5 funds raised a total of $260 million:

· Parafi launched a new $120 million fund with plans to invest in 30 to 50 projects over 3 to 5 years.

· Lemniscap launched a $70 million fund focusing on ZK infrastructure, consumer applications, Bitcoin ecosystem, security, and DePIN.

· The Open Network Ventures launched a $40 million fund to support early crypto projects within the TON ecosystem.

· Morph and Foresight Ventures launch $20M ecosystem fund with a focus on consumers.

· OKX CVC and Aptos launch $10M Web3 and crypto fund

Pre-seed financing since 2018

Source: Messari, Pre-seed project fundraising from January 2018 to August 2024

August 2024:

· A total of $38M was raised, up 3% from the previous month, involving 14 disclosed pre-seed stage companies.

· Total deals were 20, down 30%; estimated $49M raised across all deals.

· The average round size for pre-seed this month was about $2.7M.

· The average round size for pre-seed companies since 2018 is $1.5M.

Pre-seed highlights this month:

SatLayer recently raised $8M in a pre-seed round. The project introduces Bitcoin restaking capabilities for decentralized applications, allowing Bitcoin to play a greater role in securing decentralized networks. Using the Babylon protocol, SatLayer connects Bitcoin to the Proof-of-Stake system, improving security and providing new yield opportunities for Bitcoin holders. This development highlights the growing demand for Bitcoin as a core collateral asset in Web3, potentially bringing more liquidity and security to decentralized infrastructure, while also demonstrating investor confidence in Bitcoin-based DeFi innovations.

Seed funding since 2018

Source: Messari, Seed funding from January 2018 to August 2024

August 2024:

· 46 seed-stage companies raised a total of $237 million (disclosed).

· Total deal count was 50, with an estimated $258 million raised.

· The average seed-stage round size for the month was ~$5.1 million.

· The average pre-seed round size was $4.5 million.

Seed Financing Highlights This Month:

WSPN recently raised $30 million in a seed financing round to accelerate the development of its next-generation stablecoin infrastructure "Stablecoin 2.0". By introducing user-oriented governance, enhanced accessibility, and a decentralized payment network similar to Visa, WSPN solves the current problems of concentration and limited use in the stablecoin market. This investment, as well as the addition of industry veteran John Partridge, enables WSPN to redefine the application of stablecoins in the broader payment and financial systems, drive mainstream adoption and strengthen the foundation of the Web3 digital economy.

Series A funding since 2018

Source: Messari, Series A funding from January 2018 to August 2024

August 2024:

· 14 Series A companies raised a total of $237 million (disclosed).

· Total number of deals was 15, with an estimated $253 million raised.

· The average Series A round size this month was approximately $16.9 million.

· The average Series A round size was $17.6 million.

Series A Highlights This Month:

WSPN recently raised $55 million to further develop its automated risk management tools to address key challenges in DeFi. WSPN's platform helps DeFi protocols such as Aave and GMX respond to market volatility more efficiently and securely through real-time on-chain economic security and risk assessment, reducing human error and centralization risks. As DeFi continues to grow and attract more capital, the need for powerful automated systems like WSPN becomes critical to protect user funds and maintain trust in the decentralized financial market.

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