Crypto startups secure $691 million in venture capital during September

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Venture capital (VC) funds invested over $659 million in crypto startups last month, representing a 3% increase compared to August, according to DefiLlama data.

The blockchain gaming sector grew for the second consecutive month, with VC funds pouring $63 million into blockchain titles, marking a 32% monthly growth.

Nearly half of the money raised by blockchain gaming startups was directed at Balance Games. The project received $30 million from companies such as Animoca, a16z, Aptos Labs, and DWF Labs to combine blockchain and artificial intelligence to create more enjoyable user experiences.

Infrastructure

Projects building blockchain infrastructure received $457 million in September, dominating 71.5% of the funds received by the whole crypto ecosystem in the period. This is virtually the same amount captured by the sector in August.

Celestia (TIA) raised $100 million through a “strategic” funding round, the largest among infrastructure startups. The round was led by Bain Capital Crypto and included participation from 1kx, Robot Ventures, Syncracy Capital, and Placeholder.

Additionally, Huma Finance raised $38 million to develop its blockchain-based payment network in a round that included participation from Fenbushi Capital, HashKey Capital, and ParaFi Capital.

DeFi funding declines

Despite the stability in blockchain infrastructure-related investments, DeFi ecosystem startups received $58 million last month, down 55% from August.

Drift led the largest DeFi funding round, securing $25 million in a Series B round led by Multicoin Capital. The second-largest investment round by DeFi startups was led by Puffpaw, a “vape-to-earn” application developed on Berachain.

Web3 adoption received a boost last month, with $59 million directed toward startups building blockchain-based versions of traditional services.

Tune.fm, a decentralized music streaming platform similar to Spotify, raised $50 million during the month from Global Emerging Markets Group.

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Source: https://cryptoslate.com/crypto-startups-secure-691-million-in-venture-capital-during-september/