Top 10 crypto projects that raised venture capital in April

Crypto fundraising once again reached new highs. After Crypto has reclaimed relevancy worldwide, venture investors have regained their risk appetite (and have once more proven to be followers, not leaders).

In April 2024, crypto startups raised $1.09 billion across 168 unique rounds. These projects span various sectors such as RWA, Interoperability, Bitcoin Economy, and AI, and have secured funding ranging from $1.5 million to $30 million. The trend is clearly up, as displayed in the chart below.

A few crypto sectors stood out. Tokenizing real-world assets enables fractional ownership and makes high-value assets more accessible. RWA took centre stage after Larry Fink broadcast RWA to the public on live television. The Bitcoin Layer 2 space and Bitcoin Economy have become hot topics with the release of Runes Protocol. Let's look at the ten most exciting projects that raised capital in April 2024 without further ado.

Zeus Network

Zeus Network, a Solana-based interoperability layer, aims to bridge Solana with other major blockchains like Bitcoin, Litecoin, and Dogecoin. This network leverages a proprietary system known as the Zeus Layer and the Solana Virtual Machine (SVM) to facilitate secure and efficient data transfers across various blockchain ecosystems. The primary objective of Zeus Network is to create a robust cross-chain infrastructure that supports the seamless exchange of assets and information between different networks.

Zeus Network's recent funding round was a resounding success, demonstrating the project's potential and attracting significant investor interest. Spearheaded by Mechanism Capital, the round raised over $8 million. Notable contributions came from investors such as OKX Ventures, Animoca Ventures, Big Brain Holdings, Lemniscap, and The Spartan Group. The funding, raised through a simple agreement for future tokens (SAFT), values the project between $30 million and $100 million. The funds will be utilized to develop the Zeus Network's interoperability layer further and expand its ecosystem.

BitLayer

Bitlayer, a platform centered around blockchain security, is developing a Layer 2 protocol known as BitVM. This initiative aims to bring Bitcoin-equivalent security and Turing-completeness to its users, ensuring high throughput and low-cost transactions.

Bitlayer is also pioneering the BitRC-20 asset framework, which facilitates the creation of diverse asset classes on the Bitcoin blockchain. This enhancement significantly expands the capabilities of the Bitcoin ecosystem. Committed to establishing itself as the computation layer for Bitcoin, Bitlayer is focused on providing a scalable and secure platform for decentralized applications, aiming to transform the functionality and accessibility of Bitcoin-based operations.

On April 3, 2024, Bitlayer announced a successful $5 million Seed funding round. This round was led by Framework Ventures and ABCDE Capital, with additional investments from StarkWare, OKX Ventures, Alliance DAO, and Kenetic Capital. The funds will be used to advance the development of Bitlayer's Bitcoin Layer 2 network and its overall ecosystem.

Raiinmaker

Raiinmaker is an innovative project that combines AI and crypto. It utilizes decentralized artificial intelligence and a human-powered network to enhance digital operations. This platform is tailored to change user interaction and monetize digital content through cutting-edge Web3 technologies.

Raiinmaker rewards users for contributions such as generating AI content, training AI models, and operating mobile DePIN Nodes. These nodes facilitate decentralized computing and network validation, bolstering Raiinmaker's infrastructure. The platform employs a "Proof of Influence" mechanism that allows users to earn money by creating and sharing original content on social media.

Moreover, Raiinmaker integrates NFTs and AI-generated art, expanding users' creative possibilities. It is designed to be accessible on mobile and desktop devices without needing specialized hardware or extensive technical knowledge, making it approachable and user-friendly.

Raiinmaker's mission is to foster a more sustainable and equitable digital ecosystem in which users primarily benefit from and control the content they create and share. The platform empowers communities and individuals by providing tools to monetize their digital interactions.

Recently, Raiinmaker secured $7.5 million in a seed funding round co-led by Jump Capital and Cypher Capital, raising its total capital to $12.5 million. This funding will support the ongoing development of Raiinmaker's infrastructure, products, and community expansion.

Opentrade

Opentrade is a Real World Asset crypto project that provides institutional lending and yield products on-chain for regulated asset managers. The platform utilizes Circle's payment and DeFi infrastructure, known for issuing stablecoins such as USDC and EURC.

Opentrade enables regulated asset managers to create lending products that generate yield by depositing USDC or EURC into on-chain vaults. These vaults adhere to specific investment criteria and target yields. This design aims to offer a secure and efficient method for asset managers to deliver yield-bearing products, capitalizing on the stability and security of these well-established stablecoins.

The mission of Opentrade is to facilitate a connection between traditional finance and decentralized finance, providing a platform where regulated asset managers can securely and efficiently offer yield-bearing products using USDC and EURC. This aligns with Opentrade's broader vision to bridge the gap between these two financial realms, enhancing the accessibility and functionality of yield products in the DeFi space.

Recently, Opentrade successfully raised $3.2 million in a seed funding round. Participants in this round included the a16z Crypto Startup Accelerator (CSX), CMCC Global, Draper Dragon, Ryze Labs, and Plassa Capital. These funds will be used to expand the team across all essential functions, supporting the continued development and expansion of the platform.

Mezo

Mezo is a Bitcoin Layer 2 project designed to scale the Bitcoin network significantly. It aims to bring about 25% of the world's economy on-chain, a size comparable to the current US economy.

Operating as a permissionless Bitcoin Economic Layer, Mezo utilizes a neutral smart contract infrastructure to facilitate a diverse range of applications, enabling a thriving circular economy where Bitcoin is utilized in every aspect. An innovative feature of Mezo is the Proof of HODL program, which motivates users to leverage their dormant Bitcoin holdings. Users earn "HODL Score multipliers" by locking up Bitcoin, enhancing their network benefits and incentivizing active participation rather than passive holding.

Mezo's mission is to revitalize the Bitcoin network and its user base by transforming passive holdings into active economic contributors.

Recently, Mezo secured $21 million in a Series A funding round led by Pantera Capital, with additional support from notable investors such as Multicoin, Hack VC, and Draper Associates. This substantial financial backing will fuel the development and launch of Mezo, enhancing the Bitcoin blockchain's infrastructure to support fast and cost-effective transactions. This investment reflects confidence in Mezo's potential to redefine the scope and functionality of Bitcoin as a cornerstone of the digital economy.

Zoth

Zoth is a Real-World Asset backend yields project designed to provide users with sustainable yields backed by real-world assets. At the intersection of tokenized yield and real-world assets, Zoth has garnered significant support from Binance.

The project enables users to earn RWA-backed returns by staking stablecoins on the ZOTH-FI market. Zoth is expanding its offerings and preparing to launch various regulated products, including money market funds and other financial instruments. These developments aim to provide users with a diversified portfolio of investment options.

The mission of Zoth is to seamlessly integrate traditional finance with decentralized finance, creating a platform where users can confidently earn yields backed by tangible, real-world assets. The vision behind Zoth is to establish a sustainable and regulated ecosystem that empowers users to engage with the financial markets more securely and confidently.

Recently, Zoth raised $2.5 million in funding, with significant contributions from Graviton and other investors. This capital infusion will enhance the development of the Zoth platform, expand its team, and broaden its reach to a larger audience, ensuring that more users can benefit from the innovative financial solutions it offers.

Bouncebit

Bouncebit is a Bitcoin Layer 1 project that aims to transform how Bitcoin holders can earn yields on their BTC holdings. At the core of Bouncebit's innovation is a unique dual-token staking system that utilizes Bitcoin and the native Bouncebit token to secure the network. Users can stake their BTC and its wrapped versions, WBTC and BTCB, on the Bouncebit platform to generate yields.

To enhance its capabilities further, Bouncebit has integrated a transparent, centralized finance model. This model employs the custody services of Mainnet Digital and leverages Ceffu's MirrorX technology. This setup enables Bitcoin to maintain its on-chain status while participating in trading activities on centralized exchanges. The outcomes of these trades are reconciled on-chain with a T+1 settlement cycle, ensuring transparency and reliability in transactions.

Bouncebit's mission is to bridge the gap between traditional and decentralized finance by offering a platform where Bitcoin holders can earn sustainable yields backed by real-world assets. The project's vision is to create a more inclusive and transparent financial system where Bitcoin is not just a store of value but also an active contributor to the financial ecosystem.

Recently, Bouncebit secured undisclosed funding from Binance Labs, one of the most influential venture capital firms in the cryptocurrency space.

Inference Labs

Inference Labs specializes in developing trustless AI systems that operate on decentralized networks, employing zero-knowledge proofs to verify operations. This technology allows one party to prove the truth of a statement to another without revealing any additional information, thereby maintaining privacy and security.

Driven by a mission to usher AI into a new era that is secure and widely accessible, Inference Labs strives to prevent the monopolization of AI technology, ensuring it remains a tool for the many, not just the few. This mission is particularly relevant as AI's potential dramatically surpasses current technological applications like social media, making its democratization beneficial and necessary for future advancements.

The vision of Inference Labs is to integrate the transformative principles of Web3 with AI, making it more accessible, secure, and user-friendly. The company is committed to developing AI that supports free speech and democratic values and utilizes a diverse dataset representing a broad spectrum of voices and opinions. An integral part of their strategy is creating a network that supports efficient AI verification through a novel "Proof of Inference" consensus, enhancing the integrity and reliability of AI systems.

Inference Labs secured $2.3 million in a Pre-Seed funding round. Delphi Ventures, Digital Asset Capital Management, and Mechanism Capital led the round, which was also participated in by Big Brain Holdings, Bitscale Capital, Edessa Capital, ID Theory, Metropolis DAO, Mozaik Capital, Newman Capital, and Seed Club Ventures. The capital raised will enhance the development of their verification network and advance the Proof of Inference consensus.

Chakra

Chakra is a Bitcoin restaking protocol driven by zero-knowledge (ZK) proofs, designed to significantly enhance the functionality and liquidity of Bitcoin through a secure Proof-of-Stake system. This innovative protocol enables Bitcoin holders to partake in staking activities without transferring their assets from their wallets, ensuring complete control and ownership remain with the user. The integrity and privacy of the staking process are upheld using ZK-proofs, which verify the staking events in a manner that is both trustless and verifiable directly on the blockchain.

Chakra allows Bitcoin holders to restake their assets using a ZK-based staking proof system. Moreover, Chakra's protocol facilitates the creation of DeFi derivatives from staked Bitcoin, which can be utilized across various decentralized finance applications, thus broadening Bitcoin's integration into the expansive DeFi ecosystem.

The mission of Chakra is to unlock the liquidity of long-term Bitcoin assets while preserving a decentralized service structure that empowers the asset holders themselves. Chakra envisions establishing a robust and secure Bitcoin Proof-of-Stake system that enhances Bitcoin's utility and adheres to its core principles of decentralization and security.

Chakra recently secured $3.5 million in a seed funding round, receiving substantial backing from StarkWare and several key figures in the Bitcoin community. This support underscores the confidence in Chakra's innovative approach and its potential to reshape the landscapes of Bitcoin and decentralized finance.

Nebra

Nebra is a blockchain research and development organization that recently raised $4.5 million through a combined pre-seed and seed funding round. This funding is earmarked for advancing their Shared Settlement Layer, a pioneering platform designed to drive the mass adoption of zero-knowledge proofs within the Ethereum ecosystem.

The Shared Settlement Layer developed by Nebra is based on the innovative concept of Universal Proof Aggregation (UPA). This technology aggregates proofs from any circuit, significantly reducing on-chain verification costs and facilitating the composition of proofs for enhanced interoperability and shared settlement. This is part of Nebra's broader initiative to scale Ethereum's proof settlement capabilities in a way that is both trustless and resistant to censorship.

Nascent led the funding round. The capital raised will further develop the Shared Settlement Layer and support Nebra's mission to bring ZK-proofs into mainstream use.

It is encouraging to witness an increase in capital flowing into the early stages of the crypto industry. Sectors that are popular among venture investors tend to become popular among the general public around 12-18 months later. 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!