Top 10 Projects that got Funded in December 2023

After almost 2 years of declining funding, crypto fundraising has finally started to pick up again. At the tail end of what was an excellent year for crypto price-wise, venture investors have regained their risk appetite (and have once more proven to be followers, not leaders).

In December 2023, roughly $1 billion was raised by crypto startups across 105 unique rounds. While a slight decrease compared to November, December is historically a slow month for fundraising due to the holidays in the latter half. Still, the trend is clearly up as displayed by the chart below.

There were a few crypto sectors that stood out. After being largely ignored for years, the Bitcoin Economy, which comprises blockchains and DeFi projects for the leading cryptocurrency, has garnered significant attention, resulting in numerous funding rounds for Bitcoin Economy projects. The merger of AI and Crypto also stood out as one of the most funded (and exciting) categories. Finally, gaming, decentralized infrastructure, the Creator Economy, and restaking were popular sectors this month. Without further ado, let's take a look at the 10 most interesting projects that raised capital in December 2023.

#1: Babylon Chain

Imagine a world where Bitcoin, the largest and most secure cryptocurrency, can be used to strengthen the security of other blockchain networks. This is exactly what Babylon Chain aims to do. In simple terms, Babylon Chain allows Bitcoin holders to 'stake' their coins on other Proof-of-Stake (PoS) blockchains, enhancing the security of these networks while earning rewards. This innovative approach taps into the significant capital base of Bitcoin holders and utilizes Bitcoin’s robust security features to support and stabilize newer and smaller blockchain networks.

Babylon Chain is part of the decentralized infrastructure sector, specifically focusing on the intersection of Bitcoin and Proof-of-Stake (PoS) blockchains. The project's vision is to revolutionize how PoS networks secure their platforms, moving beyond the limitations of native token staking. By enabling these networks to use Bitcoin as a staking asset, Babylon Chain aims to mitigate issues like high inflation rates often required to attract capital in PoS systems. This pioneering approach not only enhances the functionality and appeal of Bitcoin but also introduces a new layer of economic security and efficiency to the broader blockchain ecosystem.

In December 2023, Babylon Chain raised $18 million in a Series A funding round. The round was led by Polychain Capital and Hack VC, with other notable investors including Framework Ventures, Polygon Ventures, Castle Island Ventures, and OKX Ventures. This round followed a successful $8 million seed funding disclosed earlier in March. The funds will be used to grow Babylon's team and expand its ecosystem. The project is already in discussions to support the Cosmos Hub and Polygon networks, with plans to launch the protocol around the next Bitcoin halving in April 2024. The founding team, led by Stanford Professor David Tse and Dr. Fisher Yu, brings a wealth of expertise in blockchain security and consensus protocol research, promising a strong foundation for Babylon's ambitious roadmap.

1. Website: https://babylonchain.io/
2. Sector: Bitcoin Economy
3. Funding: $18m

#2: Formless

Formless is a decentralized network and digital platform designed to empower individuals to connect, create, collaborate, and share within a multiplayer digital economy. At its core, Formless is about peer-to-peer coordination, shared ownership, and fostering communities around both physical and digital properties. Essentially, it's a space where users can come together to form unique collaborations and share their creations, leveraging the power of blockchain for decentralized governance and true ownership.

Formless successfully raised $2.2 million in its Pre-Seed funding round on December 20, 2023. This round saw contributions from notable investors like a16z crypto, Sandeep Nailwal, Beacon Accelerator, Zypsy, Dharmesh Shah, vVv, Wagmi Ventures, MH Ventures, Knights Capital, and Contango Digital Assets. While the roadmap details are not explicitly stated, the current status indicates a focus on further developing the platform and expanding its user base and functionalities. Formless’s future prospects seem bright, with its innovative approach to digital collaboration and ownership in the Web3 space, signaling a new era of decentralized digital economies.

1. Website: https://www.formless.xyz/
2. Sector: Creator Economy
3. Funding: $2.2m

#3: Eclipse Fi

Eclipse Fi is a modular multi-chain launch protocol that operates within the Cosmos ecosystem and integrates with leading Layer-2 protocols. It aims to revolutionize Web3 launches by establishing a decentralized hub on Cosmos and various Layer 2 chains. Eclipse Fi is distinguished by its focus on solving cross-chain user experience and sustainability issues common in launchpads. It uses features like Smart Accounts and a cross-chain architecture to simplify the user journey. The protocol also emphasizes deep ecosystem building, with a particular focus on the Cosmos ecosystem, housed on the Neutron blockchain, and emerging Layer-2s like Mantle, Linea, and Base. This strategic alignment positions Eclipse Fi at the forefront of facilitating robust foundations and collaborative ecosystem growth.

Eclipse Fi successfully raised $1.9 million, showcasing a commitment to creating a fair cap table with a diverse group of leading Web3 VCs, angel investors, and influencers. Notable participants in the fundraising include Big Brain Holdings, Rarestone Capital, Crypto Banter, Ivan on Tech, Gainzy, and many more. The project has already achieved significant milestones, including securing over 35 partnerships and collaborations, a strong lineup for its inaugural launchpad, an extensive Key Opinion Leader (KOL) network, 200,000 testnet participants, and a community exceeding 250,000 members across social platforms.

Eclipse Fi's roadmap includes the application of decentralized privacy-preserving zk-KYC, a modular toolkit for community-aligned launches, reputation scoring, and rigorous due diligence for launchpad projects. The native token of Eclipse, $ECLIP, saw a successful Token Generation Event (TGE) and is listed on various exchanges. Looking forward, Eclipse Fi aspires to simplify the complexity of Web3 token launches, promising a more accessible and community-focused future in the decentralized launch ecosystem. This vision, coupled with the project's commitment to community engagement and sustainable growth, positions Eclipse Fi as a potential game-changer in the Web3 space. The project's aim to 'onboard your grandma' reflects its dedication to making the future of Web3 token launches as user-friendly as possible, heralding a new era of inclusivity and accessibility in the blockchain world.

1. Website: https://eclipsefi.io/
2. Sector: Interoperability
3. Funding: $1.9m

#4: Liquidium

Liquidium operates in the innovative sector of Bitcoin ordinal lending, which is a burgeoning area in the cryptocurrency space. In simple terms, Liquidium facilitates the borrowing and lending of Bitcoin ordinals, which are unique digital artifacts inscribed on individual satoshis, the smallest unit of Bitcoin. These ordinals, which can represent anything from digital art to code, are emerging as valuable assets in the crypto world. Liquidium's platform allows users to unlock the liquidity of their ordinals without selling them, providing a much-needed financial service in this niche market. Currently, Liquidium is in beta, that you can join through their waitlist.

Liquidium successfully raised $1.25 million in pre-seed funding, a strong indicator of the market's interest in and the potential of ordinal lending. This round of funding was supported by prominent investors in the crypto space, including Bitcoin Frontier Fund, Side Door Ventures, Actai Ventures, Sora Ventures, Spicy Capital and UTXO Management. The roadmap for Liquidium includes further development of their lending platform, integration with various wallets and services, and continuous improvement of the user experience. The successful pre-seed funding round positions Liquidium to be a leading player in the ordinal lending space, with potential for significant growth as the market for Bitcoin ordinals continues to evolve.

1. Website: https://www.liquidium.fi/
2. Sector: Bitcoin Economy
3. Funding: $1.25m

#5: RIO network

Rio Network operates in the cutting-edge sector of liquid restaking tokens (LRTs). In simple terms, it aims to redefine the concept of LRTs by creating a platform that allows users to stake their assets while maintaining liquidity. This approach is particularly significant in the cryptocurrency domain, where asset liquidity often poses challenges for investors. Rio Network's primary product, reETH, provides risk-managed access to Ethereum's total return without sacrificing liquidity. This focus on both risk management and liquidity is a significant step forward in the staking ecosystem. Currently, Rio Network is in the developmental phase, working towards launching their reETH product and other features that will facilitate this innovative approach to liquid restaking.

Rio Network successfully closed a significant seed funding round, co-led by prominent investors Polychain Capital, Blockchain Capital, and Breyer Capital. This round saw participation from over 50 investors, demonstrating strong market confidence in Rio Network's vision and technology. In terms of roadmap, Rio Network is focused on advancing its first product, reETH, while also continuing to develop and refine its platform and services. The support from such esteemed investors not only provides the necessary capital but also brings in strategic expertise and insights to guide Rio Network's growth. Looking ahead, Rio Network's innovative approach to liquid restaking tokens positions it as a potentially transformative player in the crypto ecosystem, with prospects for significant impact on how assets are staked and liquidity is managed in the blockchain space.

1. Website: https://www.rio.network/
2. Sector: Staking 2.0
3. Funding: Undisclosed

#6: Wynd Network & Grass

Wynd Network operates in the intersection of blockchain technology and artificial intelligence (AI) development, focusing on decentralized AI projects. Their primary product, Grass, is a decentralized web scraping network aimed at transforming public web data into AI datasets. This innovative approach leverages millions of home internet connections to scrape and verify web data, which is vital for developing AI models across various industries. Grass stands as a decentralized oracle for AI, offering datasets with transparent origins and fair compensation for network contributors. Currently, Wynd Network and its Grass project are enhancing their technological infrastructure, expanding their node network, and refining data verification processes.

Wynd Network successfully secured $3.5 million in a seed funding round, led by Polychain Capital and Tribe Capital. This funding round also saw participation from other investors, including Bitscale, Big Brain, Advisors Anonymous, Typhon V, and Mozaik. The funds will be used to accelerate the development of the Grass project, focusing on expanding its network of nodes and enhancing its data verification process. As for the future prospects of Wynd Network and GetGrass, the combination of blockchain and AI, along with the unique approach to data scraping and dataset generation, positions them to be significant players in the AI and crypto sectors. Their innovative model could pave the way for new methods of data collection and utilization in AI development, indicating a promising future in the decentralized tech landscape.

With hints of an upcoming airdrop in March, new users are flocking to Grass.

>> Join Grass' incentivized beta here <<

1. Website: https://www.getgrass.io/
2. Sectors: DePin, AI<>Crypto
3. Funding: $3.5m

#7: Endless Clouds

Endless Clouds is an innovative project in the mobile gaming industry, focusing on tokenized gaming experiences. It operates primarily in the sector of blockchain-enabled MMORPGs and PvP brawlers. Endless Clouds' key projects include Treeverse, an open-world MMORPG, and Capsule Heroes, a PvP brawler. These games are designed to integrate tokenization elements, allowing players to trade items earned or acquired within the game, thereby empowering users with ownership and tradeability of digital assets. Currently, Endless Clouds is focused on the development and enhancement of these games, aiming to create fun, interactive experiences while building timeless intellectual property.

Endless Clouds recently secured over $2.5 million in funding, a significant milestone indicating strong confidence in its vision and strategy. This funding round attracted a diverse group of investors, including notable companies and individuals from the gaming and blockchain sectors, such as Animoca Brands, Sky Mavis, YGG, Faze Clan, Immutable, Pudgy Penguins, Pixelmon, Pixels Online, and Pixel Vault. The funds are allocated towards increasing the team size, outsourcing, and marketing, with a focus on growing resources heading into 2024. Founders Loopify and Aizea emphasize the use of these funds to sustain the development of Treeverse and Capsule Heroes, ensuring that gameplay builds will be in the hands of users for testing. The anticipation for these games is high, and the successful funding round sets the stage for Endless Clouds to transform the mobile gaming and blockchain integration landscape in the coming year.

1. Website: https://endlessclouds.xyz/
2. Sector: Gaming
3. Funding: $2.5m, strategic

#8: MAP Protocol

MAP Protocol is a Bitcoin layer-2 solution and an interoperable omnichain infrastructure designed to revolutionize cross-chain communication. In simple terms, it enables trustless, peer-to-peer interactions between different blockchain networks. This allows developers to build decentralized applications (dApps) that can function across multiple blockchains, thereby creating a unified Web3 ecosystem. MAP Protocol leverages light clients and zero-knowledge technology to enhance efficiency and privacy in blockchain interactions. Currently, MAP Protocol is focused on developing its infrastructure to support scalable and efficient cross-chain communication, addressing high gas fees and network congestion issues typically associated with the Bitcoin blockchain.

MAP Protocol has successfully raised strategic funding, with recent rounds completed on January 12, 2024, and December 7, 2023. The January round was led by LK Venture, while the December round included investors such as DWF Labs and Waterdrip Capital. The funds raised are earmarked for enhancing the technological infrastructure of MAP Protocol, expanding its capabilities in light client and zero-knowledge technology, and furthering its mission of enabling seamless cross-chain communication. The roadmap for MAP Protocol includes the continued development of its layer-2 solution for Bitcoin, as well as the expansion of its interoperable omnichain infrastructure. The project's focus on building a unified Web3 ecosystem through its innovative approach to cross-chain interaction positions it as a promising contributor to the future of decentralized applications and blockchain interoperability.

1. Website: https://www.mapprotocol.io/
2. Sector: Bitcoin Economy
3. Funding: Undisclosed

#9: LandX

LandX is an agricultural finance protocol designed to bridge the gap in agriculture financing by providing upfront capital to farmers in exchange for a percentage of their future harvests. This unique approach operates in the agricultural finance sector and is backed by the security of the underlying farmland, offering investors an opportunity to earn sustainable yields from tangible assets. LandX stands out by bringing real-world agricultural commodity assets and tokenized farmland into the decentralized finance ecosystem. Through innovative products like xTokens, LandX creates inflation-hedged, uncorrelated digital assets that can be traded on decentralized exchanges.

LandX recently closed a private and public investment round, raising over $5 million, marking a significant vote of confidence in its potential to bring real-world agricultural assets on-chain. Following the private round, LandX initiated a public round to offer LNDX governance tokens to a broader audience. The roadmap for LandX includes the official platform launch and the distribution of LNDX tokens, with private sale investors locking their tokens for 3-12 months and seed investors for 48 months. This strategic approach, combined with a $500,000 commitment to decentralized exchange liquidity pools, positions LandX as a pioneering project in the DeFi sector, particularly in the realm of agricultural finance.

1. Website: https://landx.fi/
2. Sector: Real World Assets
3. Funding: $5m

#10: Farcana

Farcana is a trailblazer in the fusion of gaming and cryptocurrency. Operating in the sector of blockchain-based gaming, it takes the concept of eSports to a novel dimension by integrating Bitcoin rewards. This third-person shooter game, set in a captivating sci-fi landscape, provides players with a dynamic and immersive gaming experience. As of now, Farcana has achieved significant milestones in its development, offering a robust and engaging platform for gamers and crypto enthusiasts alike.

In a remarkable funding round, Farcana raised $10 million, a testament to its promising potential in the Web3 gaming landscape. This investment was backed by notable investors, including the likes of Animoca Brands, Polygon Ventures, and Fenbushi Capital. The roadmap for the project includes ongoing enhancements to gameplay, expansion of its in-game economy, and further integration of blockchain technology. With its innovative approach to gaming and cryptocurrency, Farcana stands poised to redefine the gaming industry, promising exciting prospects for the future.

1. Website: https://www.farcana.com/
2. Vertical: Gaming
3. Funding: $10m

Closing thoughts

It is encouraging to witness an increase in capital flowing into the early stages of the crypto industry, following a period of declining funding. Sectors that are popular among venture investors tend to become popular among the general public around 12-18 months later. It is fascinating to observe the growing demand for the Bitcoin Economy, AI, Restaking, the Creator Economy, and gaming. Make sure to explore and utilize these early-stage projects, as you may receive handsome rewards through an airdrop!

That’s it for this month’s top 10 crypto projects that raised funding! If you’d like to receive the next edition, and all our other top content, directly in your inbox, subscribe to our no-nonsense weekly newsletter here!