Crypto Venture Capital Landscape: Top 10 Newly Funded Projects in June 2023

Introduction

According to DeFi Llama, 50 crypto projects raised capital in June. The total capital raised month over month decreased, with $343,98 million in June compared to $603,09 million in Mayl (42.96% decrease). This decrease can be described by venture capital firms pivoting to AI in traditional markets. Venture Capital firms have pivoted all their focus on AI. In June the AI industry raised over $200 Million.

Now let's turn our spotlight to the rockstars of June. There were some clear winners in the capital-raising arena. In the spirit of the times, projects flexing their muscle in Real World Assets or NFT’s were attracting substantial interest and capital. Meanwhile, the once star-studded Orderbook platforms found themselves in the unusual position of wallflowers, struggling to pull in the same levels of capital as they once did.

Get ready, as we are about to introduce the top ten projects that successfully navigated the market turbulence to raise capital in June. These ventures serve as clear evidence that even in the face of fluctuating market dynamics, innovation and determination still have the potential to triumph. Let's delve into their narratives and acknowledge their accomplishments.

Bracket Labs

Bracket is an innovative application that empowers non-custodial DeFi users with leveraged structured products. The essence of BracketX's innovation lies in its capacity to distill complex leveraged strategies into straightforward payoff multiples. These can be conveniently purchased with a few clicks, making it a game-changer for the DeFi landscape.

The company's flagship product, Bracket, offers a unique proposition: buyers can profit if the price of an asset enters a claimable range within a given term. This approach circumvents the need for margin accounts and other cumbersome prerequisites, making it easier for individuals to engage with the platform. This structure particularly thrives in high-volatility environments where buyers anticipate significant price movements, either up or down, during the term. Bracket further enables users to assume long or short positions, augmenting its appeal for those ready to pay premiums for their contracts. Beyond Bracket, the company has recently introduced two new game-changing products: Epoch and Channel. Available on the Bracket Labs platform, BracketX.fi, these offerings aim to enable DeFi traders to profit in all types of market volatility.

Bracket Labs, currently part of Binance Lab's Season 5 incubator, has been steadily establishing its reputation as a creative startup pioneering leveraged structured products for DeFi. One key realization was that existing DeFi solutions were under-serving the market by catering predominantly to high-volatility scenarios. Additionally, Epoch was conceptualized as a periodic buying version of Channel, introducing a "stay in" vs "break out" investing dynamic to gamify the experience. By basing its pricing on an exponential weighted moving average rather than dedicated market markers or funders, Epoch encourages traders to profit in sideways markets.

The latest additions, Channel and Epoch, join Bracket in the BracketX.fi product line-up. Bracket, initially launched on the Arbitrum One Mainnet in November 2022, has already made a mark with its high-volatility leveraged structure. Channel and Epoch, also available on the Arbitrum One Mainnet, were introduced in February 2023, further solidifying Bracket Labs' commitment to transforming the DeFi landscape.

AlloyX

AlloyX's aims to open up access to real-world asset liquidity for protocols, decentralized autonomous organizations and institutional investors in the DeFi space, offering diversification beyond existing crypto-based lending and liquidity provision opportunities. Users can create customized strategies that blend tokenized U.S. Treasury bills with a range of real-world assets to balance their yield and risk appetite.

The genesis of AlloyX lay in the founders' experiences working with a credit fund investing in emerging markets businesses. The team observed firsthand the challenges liquidity providers face when attempting to lend to real-world assets on-chain, despite the growing demand for capital from businesses with sound financial and operational profiles. Identifying this inefficiency, the team saw an opportunity to establish a platform that simplifies investment in real-world assets and streamlines yield earning.

AlloyX recently secured $2 million in pre-seed funding. The funding round was led by Hack VC and featured investments from numerous key players in the industry, including Circle Ventures, Digital Currency Group, Stratos, Lecca Ventures, MH Ventures, very early Ventures, Archblock, dao5, and Credix Finance.

The funds will be instrumental in bolstering AlloyX's operations and extending its business reach. To date, AlloyX has successfully integrated with nine credit protocols and is working on the creation of the industry's first blended investment vault. This is in partnership with Credix Finance and a protocol centered on tokenized U.S. Treasury Bills. Since its inception in 2021, AlloyX has achieved an impressive $5 million in total value locked (TVL) and generated yields averaging over 18%. The anticipated blended vault is slated to go live in early Q3 2023, with the team planning to integrate with additional DeFi protocols and launch more investment vaults later in the year.

TapiocaDAO

TapiocaDAO is constructing the first omnichain money market. Spanning across 17+ EVM and non-EVM networks, this unique approach ushers in a new era of open financial layer that amplifies the power of DeFi users across a multitude of networks. The organization leverages the innovative LayerZero generalized messaging network for its omnichain infrastructure. This allows seamless interoperability and composability across dozens of diverse networks, thereby simplifying the currently disjointed DeFi user experience. Tapioca's innovative strategy eradicates the need for chronically exploited intermediaries that carry contagion risk, thus enhancing capital efficiency through liquidity defragmentation.

Further advancing their innovative strides, TapiocaDAO introduces USDO. It uniquely solves the stablecoin trilemma of price stability, censorship resistance, and composability. Contrary to the prevalent trend of current stablecoins, which largely function as unconnected, centralized assets wrapped in dollar-denominated assets, akin to store credits, USDO is different. The LayerZero Omnichain Fungible Token (OFT) super-standard empowers USDO to cross many chains seamlessly without the need for a bridge. This negates the problems of slippage, wait times, and fees, thereby fostering a more efficient and secure cross-chain transportation mechanism.

TapiocaDAO recently announced the successful completion of a $6 million seed funding round. The participants in the funding round represent a diverse array of industry players, including Fisher8 Capital, HedgedHog7, Crypto Condom, DCFGOD, CoinFlip Canada, LayerZero Labs, Noah Seidman, VFAT0, Parc Capital, JonesDAO.io, SmallCapScience, Icebergy, Redphonecrypto, Blocmatesdotcom, ZoomerOracle, Squirrel Crypto, DewhalesCapital, and many more. This financial boost will undoubtedly spur TapiocaDAO's mission to transform the DeFi landscape with their innovative omnichain approach.

Hook

With options being an ideal fit for both active trading and passive holding of NFTs, Hook provides an innovative platform for capitalizing on these assets. Hook enables NFT holders to write covered call options on vaulted NFTs, earning valuable premiums in the process. This is particularly lucrative for those who believe their NFT's value will rise, but not beyond a certain point. By selling call options, they can pocket a premium that remains theirs regardless of subsequent price movement. As such, it's an efficient strategy to boost returns from long-term NFT holdings.

On the flip side, traders can purchase call options through Hook to obtain exposure to potential NFT price increases, and achieve higher capital efficiency. This approach allows traders to capture a significant portion of the upside if the NFT appreciates, while only requiring a small upfront ETH investment. Unlike borrowing funds or utilizing perpetuals for capital efficiency with NFTs, a trader's call option position cannot be liquidated on Hook. Crucially, Hook's call options operate without reliance on oracles. Instead, they utilize a settlement auction to establish the final price of the underlying asset. In the lead-up to an option's expiration, the NFT is automatically listed for sale on the option's page within Hook's user interface. This stimulates arbitrageurs or NFT buyers to bid above the strike price for the underlying NFT.

At the option's expiration, two potential scenarios can unfold. If the underlying NFT garners one or more bids above the strike price, the NFT is sold to the highest bidder. The option writer/NFT holder receives the strike price, while the option holder pockets the difference between the highest bid and the strike price. However, if the underlying NFT fails to attract any bids above the strike price, the option expires worthless. The option writer can then choose to withdraw the underlying NFT or seek to earn on it again.

Hook recently secured $3 million in funding. The round was led by Collab + Currency and Lattice, with participation from Slow, Sfermion, Maven11, Contrary, and notable angels including gmoney, jdh, Salvino D’Armati, Flamingo DAO, Neon DAO, and The LAO. These funds will be utilized to further develop the protocol, expand the team, and attract new users.

Hyperplay

In the face of web2 monopolies like Steam and Apple, which have persistently exerted hefty fees and imposed restrictive practices on game developers and players, HyperPlay emerges as a fresh and innovative solution. These platforms have often forced game developers into constructing subpar user experiences, stifling creativity and the potential for immersive, interoperable gaming realms. But with HyperPlay, we're set to turn the tide.

Now available in early access, HyperPlay offers an unprecedented game launcher that lets players carry their digital wallets, tokens, NFTs, and in-game assets into every gaming adventure via an integrated wallet overlay. This marks a significant stride towards truly effortless interoperability, opening a new dimension where players' identities can fluidly traverse across varied gaming environments.

TheHyperPlay store serves as a treasure trove for gamers eager to explore the exciting world of web3 games. Additionally, they offer aggregated access to the comprehensive game libraries of the Epic Game Store and GOG. By supporting a multitude of game stores, HyperPlay is fostering a competitive market where developers can handpick the distribution channels that align best with their visions.

HyperPlay has recently raised a whopping $12 million from prestigious firms such as Griffin Gaming Partners, Bitkraft, MetaMask, among others. This robust backing propels our commitment to create the world's first truly web3-native game store and launcher, seamlessly blending the gaming and blockchain landscapes.

At HyperPlay, they envision web3 as a golden opportunity to construct permissionless, extensible, and interoperable gaming universes. HyperPlay is committed to facilitating new game genres, portable reputation, community governance, and sustainable business models. This funding round will fuel their mission to scale and transform this vision into a tangible reality.

Metablaze

MetaBlaze is not just any gaming platform. It is a fusion of Role-Playing and Strategy that yields rewards, a seamless integration of treasured on-chain assets with immersive gaming experiences that become more captivating with each iteration. This ambitious vision requires masterful execution across numerous components and disciplines. In our journey to materialize this vision, we narrate an epic tale of the distant galaxy, Galaxia Blue.

All of MetaBlaze's offerings, from games to NFT characters, artworks, and experiences, weave together a grand saga of Galaxia Blue. A galaxy marked by the spectrum of human experience — heroism, villainy, adventure, war, love, humor, and above all, hope. The flagship game, steeped in Role-Playing, Strategy, and World-Building, remains under wraps for now, but it forms the centerpiece of their long-term ambition. As stepping stones towards this grand goal, we will introduce numerous NFT collections, mini-games, and more.

The inaugural mini-game, MetaMinez, exemplifies this ethos. A strategy game where players deploy their NFT assets and $MBLZ tokens to generate mining power, the rewards of which are the coveted Terranzinite Crystals. By design, MetaMinez is not intensive; once you're registered, you're part of the game. When the game concludes, you collect your rewards. Metablaze had a recent pre-sale that successfully raised $4 million, bolstering their drive to transform their vision into reality. With a launch date set for September 15th, the countdown has begun.

Kakarot

Kakarot is an innovative Zero-Knowledge Ethereum Virtual Machine (zkEVM) that is built on the foundation of the CairoVM. Its core purpose is to offer developers an abstraction layer they are already accustomed to: the Ethereum Virtual Machine (EVM). This means that Kakarot allows developers to build and deploy as if they were working directly on Ethereum, enabling Solidity contracts to be forward-compatible with Starknet and the CairoVM.

The project, which kicked off in October 2022, harbors grand plans to bring EVM compatibility to Starknet, thereby creating a zkRollup-as-a-service tool. It aims to develop an open-source, provable zkEVM in Cairo with a precise and succinct codebase. The driving belief behind Kakarot is that the CairoVM will become the most powerful zero-knowledge toolbox in the coming years, while the Ethereum network will continue to dominate the scene.

Set to become a type 2.5 zkEVM, as classified by Ethereum co-founder Vitalik Buterin, Kakarot aims to provide compatibility with existing EVM code. This unique solution harmoniously merges the benefits of zero-knowledge cryptography with the efficiency of the EVM, laying the groundwork for secure and scalable decentralized applications. Simply put, Kakarot enables developers to seamlessly execute Ethereum smart contracts written in Solidity on Starknet without any need to alter their existing code.

As of now, Kakarot is still a work in progress and not ready for full-fledged production use. Nevertheless, the project recently hit another significant milestone: the successful closing of its pre-seed funding round. Notable investors in this round included Ethereum's co-founder, Vitalik Buterin, Ledger's co-founder and VP of innovation, Nicolas Bacca, and blockchain scaling firm Starkware, among others. This promising development hints at the immense potential of Kakarot zkEVM and its role in shaping the future of blockchain technology.

Spinamp

Listening to Music NFTs is more than just an act of appreciation; it's an integral part of the collector's journey. Spinamp, over the past year, has been diligently working towards creating an aggregator that brings together tracks minted across diverse platforms into one unified player and marketplace. Imagine the comprehensive nature of Spotify meeting the vast expanses of OpenSea, and that's Spinamp for you.

Spinamp is unique in its capability to aggregate and index Music NFTs from a wide array of platforms, including Sound, Catalog, Nina, Zora, NOIZD, Lens, Arpeggi, Decent, OpenSea Collections, Songcamp, HedsDAO, Manifold, and over 30 other smaller platforms and artist-owned contracts. On Spinamp, collecting goes beyond a transactional action; it's an immersive experience. As you listen to music on the player, you can also collect it, blending the joy of discovery with the thrill of ownership.

Spinamp is not just about listening and collecting; it's about staying updated with the best music in web3. Just as Crypto Art is free to view but valuable to own, Music NFTs on Spinamp are free to listen to but valuable to own. The joy of coming across a piece that resonates with you and collecting it on the spot to own your connection to it is unparalleled. Besides, Spinamp has created an infrastructure that provides aggregated Music NFT data via APIs and SDKs, making it easy for applications to build with Music NFTs. As we look to the future, we're excited about the role we're going to play in the adoption of Music NFTs. Our goal for this year is to make the Music NFT world more accessible, engaging, and enjoyable for music fans while enhancing how Music NFTs can stimulate music subculture and grow the community. So, stay tuned for more exciting features and enhancements coming your way!

As the NFT market continues to expand, so does Spinamp's mission to foster the best listening and collecting experience for Music NFTs. Backed by a significant investment of $1.25M, led by Palm Tree Crew Crypto, we're focused on building a robust Music NFT aggregator and player, with other investors such as Coop Records, Archetype, NoiseDAO, Fire Eyes DAO, 1kx, and many more, believing in our vision.

TegroFi

Tegro is an emerging Non-Fungible Token (NFT) exchange.The Tegro exchange platform, a pioneer in its own right, enables the bulk trading of NFTs across Ethereum, Polygon, and other EVM-compatible chains, facilitating trades for as low as $0.02. Tegro is ingeniously designed to support the decentralized NFT-20 protocol, aiding users in establishing and managing decentralized markets for their non-fungible tokens.

These markets further offer vital services like liquidity, pricing, and order matching, while also providing users with tools to monitor their portfolios and track the value of their NFTs. Tegro's Chief Operating Officer and co-founder, Ashish Rawat, has made it clear that the exchange's ultimate mission is to ease the process of NFT trading, aiming to onboard 100 million users into this expanding world.

Tegro is still in its Beta but has facilitated substantial growth for several gaming projects, resulting in significant increases in their trading volume. The company is resolute in maintaining its innovative drive within the NFT trading ecosystem, focusing on providing state-of-the-art tools and technologies to ease trading procedures.

In anticipation of its future plans, Tegro is gearing up to announce a series of significant partnerships and a substantial airdrop campaign for its community, signaling a promising journey ahead for the NFT20 exchange. With its ability to simplify NFT trading for everyone, from beginners to pro traders, Tegro is undoubtedly poised to make substantial waves in the world of NFT trading.

Tegro has successfully raised at $100 million valuation in its seed funding round. Co-founded by Siddharth Menon, formerly of crypto exchange WazirX, and Ashish Rawat, founder of fitness startup OGA Fit. Backers of the funding round included Polygon investors and a host of private investors.

Radius

Rollups have surfaced as a promising solution, providing superior scalability and design flexibility in contrast to their Layer-1 counterparts, and adeptly adapting to new use cases. However, even as rollups attempt to tackle escalating scalability demands, users face significant challenges such as harmful Miner Extractable Value (MEV) and censorship. Sequencers' ability to front-run or sandwich user transactions has led to adverse price effects, longer waits, and higher costs for transactions. This issue has resulted in massive losses, exceeding $1 billion over the past two years.

At the heart of these issues lie centralized sequencers. Decentralization of the sequencer could potentially mitigate these concerns but introduces scalability trade-offs and increased vulnerability to attack vectors. Thus, rollups face the challenge of striking a balance between decentralization, security, and scalability while meeting their economic needs. To address these issues, a novel shared sequencing solution has been proposed. This solution, known as shared sequencing, separates the tasks of sequencing and execution, providing greater flexibility in rollup deployment.

Radius is a trustless shared sequencing layer designed to shield users from harmful MEV and censorship while maximizing scalability and fostering wealth for rollups. Radius employs a unique zero-knowledge cryptographic solution called Practical Verifiable Delay Encryption (PVDE) to mitigate the influence of centralized sequencers without resorting to decentralization. This approach ensures transactions are encrypted, thereby preventing initial harmful MEV discovery and eliminating the need for trust in sequencers.

Over the past year, Radius has been focused on developing their inaugural product, 360°, an MEV-resistant DEX deployed on Polygon. This product marks the first implementation of sequencing-as-a-service. While it's currently open to whitelists, a public launch is planned for later this year. Looking ahead, exciting milestones lay on Radius' roadmap. By Q1 2024, the team plans to launch an Alpha version of their Mainnet with sequencing-as-a-service for rollups. By Q1 2025, the full-feature Mainnet is expected to roll out with complete cross-rollup capabilities.

Radius recently announced a successful pre-seed funding round, raising $1.7M led by Hashed, joined by Superscrypt, Lambda Class, and Crypto.com Capital. This fundraise marks a significant step forward for Radius in its mission to revolutionize modular blockchains through its pioneering trustless shared sequencing paradigm.

June Crypto Venture Capital

In June 2023, there were about 50 cryptocurrency projects that got money from investors.This number is 10 less than the month before. The total amount of money they got decreased .They got $343.98 million in June, which is a 42.9% decrease from the $603.09 million they got in May. This decrease can be described by venture capital firms pivoting to AI in traditional markets. Crypto Venture Capital firms have pivoted all their focus on AI. In June the AI industry raised over $200 Million.

What can we expect next month? We think these trends will keep going, but changes in the economy could cause some shifts. Things like political problems around the world and new rules for crypto could make the market uncertain. This might affect how much money is invested and how many deals are made. In addition, the broader economic conditions, including inflation rates, interest rates, and the performance of traditional financial markets, will also influence investor sentiment and activity in the crypto venture capital space.

But there's still a lot of excitement about blockchain and DeFi, and more and more industries are using digital assets. This should keep investors interested. So, despite some ups and downs in the short term, things still look good for cryptocurrency investments in the long term.

Check out the top crypto venture capital projects of July