The crypto market has been on a tear in recent years, and the amount invested in crypto projects is skyrocketing. Based on a report by the global capital markets data platform, PitchBook, crypto-focused companies raised $2.6 billion across 353 investment rounds in the first quarter of 2023. However, this marks the lowest amount invested since Q4 of 2020. But who are the major players who have benefitted from the 2023 run of crypto funding rounds?
We focus on the eleven biggest crypto funding rounds so far in 2023.
What are Funding Rounds?
Most startups have a stable vision but do not have enough capital to fund the vision. As a result, they come up with funding rounds created to give them the money needed to grow their business to the next level or stage. When they have enough funds, they release their vision faster and better.
As such, funding rounds constitute the number of times a startup returns to the market to raise more Capital. In most cases, there may be three or more rounds.
Here are the eleven significant crypto funding rounds we’ve had so far.
- Blockstream: $125 Million
- LayerZero- $120 Million
- Worldcoin- $115 Million
- Ledger- $109 Million
- Auradine- $81 Million
- Taurus- $65 Million
- SALT Lending- $64.4 Million
- QuickNode- $60 Million
- Unchained Capital- $60 Million
- Magic- $52 Million
- Scroll- $50 Million
1. Blockstream– $125 Million
Earlier this year, Blockstream, a Bitcoin technology company, raised $125 million to pave the way into Bitcoin mining, improving its facilities and hosting services. Founded in 2014, Blockstream focused on building infrastructure and applications on the Bitcoin network. It is also the developer of the decentralized market technology Liquid Network, which enables trustless Bitcoin swap settlements and helps financial institutions to tokenize assets. With the funding, the company opened up an opportunity to expand its renewable energy mining products and continue developing its Bitcoin mining machine.
2. LayerZero– $120 Million
In April, LayerZero labs, a web3 messaging protocol, closed a 120 million Series B round, raising its valuation to $3 billion from $1 billion. The leading investors in the firm included notable names like Andreessen Horowitz, auction house Christie’s, Sequoia Capital, and Samsung Next. It also received the backing of BOND, Circle Ventures, and OpenSea Ventures. The funding would go towards growth initiatives, including hiring and expanding the company’s presence in the Asia-Pacific region.
3. Worldcoin– $115 Million
In May, Tool for Humanity, the team behind Worldcoin, raised $115 million in a Series C funding round led by Blockchain Capital. The funding also saw 116z, Bain Capital Crypto, and distributed Global participation. Worldcoin, a decentralized open-source protocol, was co-founded by OpenAI CEO Sam Altman. In beta, Worldcoin is being built around the decentralized World ID and the Worldcoin token. The main aim of the funding was to help accelerate research and development and growth efforts.
4. Ledger– $109 Million
In March, Ledger, a French startup focused on developing hardware crypto wallets, announced the completion of a Series C funding round of $109 million, with its valuation rising to $1.3 billion. The funding round saw some new flow of investors, with True Global Ventures, Digital Finance Group, and VaynerFund coming into play. The funds are set to accelerate their aim of bringing in a new generation of secure consumer devices to users exploring critical digital assets and blockchain-enabled technology.
5. Auradine– $81 Million
Auradine, founded in 2022, is a pioneer in web infrastructure solutions that include blockchain, security, and privacy. In March, the company announced that it had raised $81 million in its initial Series A round of funding. The funding round was led by Celesta Capital and Mayfield, aiming to develop disruptive infrastructure solutions leveraging cutting-edge technologies.
6. Taurus– $65 Million
In February of 2023, Taurus, the leading digital asset infrastructure provider for financial institutions in Europe, announced the completion of its Series B funding round of $65 million. Credit Suisse led the round and saw the coming together of some significant players like Deutsche Bank, Picket Group, and Cedar Mundi Ventures. The funds would go toward supporting the Taurus’s growth strategy. The growth was primarily in hiring top engineering talent, getting closer to clients, expanding sales, and maintaining security, risk management, & compliance requirements across product lines.
7. SALT Lending– $64.4 Million
SALT Lending, in 2022, paused operations after the collapse of the crypto exchange FTX. In February 2023, the company closed a $64.4 million Series A funding round from a share sale to accredited investors. SALT was to use the Capital towards new products and its growth strategy.
8. QuickNode– $60 Million
At the start of the year, QuickNode, a development platform that helps web3 builders create apps, closed a $60 million Series B funding round, with the company being valued at $800 million. The funding, led by 10T Holdings, saw participation from Tiger Global, 776, and QED, among others. The funds were to be used for the company’s global expansion, hiring, and tech-building.
9. Unchained Capital– $60 Million
In April, Bitcoin financial services firm Unchained Capital completed a $60 million Series B funding round led by Valor Equity Partners, including crypto asset-management giant NYDIG. The new capital would be used to grow the client base, improve the existing product suite and expand product offerings.
10. Magic– $52 Million
In May, San Francisco-based wallet-as-a-service provider Magic announced that it had successfully raised $52 million in a strategic funding round led by PayPal Ventures. The funding also saw participation from venture firms Cherubic, Synchrony, KX, Northzone, and Volt Capital. The funding aimed at increasing adoption by providing authentic digital ownership opportunities and plans to expand functionality, enhance use cases and deepen integration within the European Union and Asia-Pacific region.
11. Scroll– $50 Million
Scroll, an Ethereum Layer 2 network that uses zk-rollups technology, raised $50 million in March. It saw significant investors like Polychain Capital, Sequoia China, Bain Capital Crypto, Moore Capital Management, Variant Fund, and Newman Capital. The funding allowed for the building of its product, the launch of its mainnet, and expand its ecosystem.
Final Thoughts
As we progress over the year, we may see some big funding rounds, with an increased number of crypto startups in the industry. The investments are aimed at fueling innovation, infrastructure development, and growth in various sectors of the crypto industry.
As the market evolves, funding rounds remain crucial for startups to realize their visions and drive advancements in the crypto space.