Startups

Chainlink Labs enters into a strategic collaboration with Cointelegraph Accelerator to support Web3 startups

Cointelegraph Accelerator is excited to announce a strategic collaboration with Chainlink Labs, the primary contributing developer of the industry-standard decentralized computing platform Chainlink.

Cointelegraph Accelerator is excited to announce a strategic collaboration with Chainlink Labs, the primary contributing developer of the industry-standard decentralized computing platform Chainlink. This collaboration will align the Cointelegraph Accelerator and Chainlink BUILD programs, helping drive innovation and accelerate the growth of next-gen Web3 projects.

The Cointelegraph Accelerator is a global program that supports early-stage and up-and-coming Web3 startups. As part of the collaboration with Chainlink Labs, the Cointelegraph Accelerator will provide Chainlink BUILD projects with marketing support, media strategy, social media playbooks, user acquisition guides, access to the largest industry events, and other benefits that help accelerate their growth.

On the other hand, Chainlink Labs will engage with projects under the wing of the Cointelegraph Accelerator by offering technical support, mentorship and providing access to Chainlink’s decentralized computing platform and expanding their builder communities.

Read more

LayerZero raises $120M to expand cross-chain messaging efforts

The new funds will be used to increase headcount and expand the cross-chain messaging protocol’s presence in the Asia-Pacific region.

Cross-chain messaging protocol developer LayerZero Labs has raised another $120 million, according to an April 4 announcement. The company plans to use the capital to increase its headcount and expand its reach into the Asia-Pacific region. The company had previously raised $135 million in March 2022.

LayerZero Labs is best known for its cross-chain messaging protocol, LayerZero, which is often used to create asset bridges between blockchain networks. It is also a supporter of the Stargate multichain bridge.

With the completion of this fundraising round, the company now has a $3 billion valuation. Over 33 investors participated in the latest funding round, including Sequoia Capital, Andreessen Horowitz, BOND, Circle Ventures, Christie’s, OpenSea Ventures and Samsung Next.

Related: Uniswap DAO debate shows devs still struggle to secure cross-chain bridges

Ryan Zarick, co-founder and chief technology officer of LayerZero Labs, said the new fundraise will help to create a multichain environment where applications can make the best use of each network’s unique benefits:

“Imagine a future where a single user-facing application can harness the speed of Solana, the security of Ethereum, and the cheap file storage of Arweave, while also being fully abstracted to the user.”

He continued, “This is our vision, made possible by the LayerZero protocol that seamlessly connects all blockchains and enables chain-agnostic applications to be built across various blockchains to create a best-in-class user experience. The days of choosing one chain to build on are over; the future is omnichain applications.”

The issue of securing cross-chain messages has become acute in recent years, as more than $3 billion was stolen from blockchain bridges in 2022, according to a report from Chainanalysis. LayerZero has attempted to solve this problem by using a relayer and oracle to secure messages, where a message is only confirmed if both the relayer and oracle agree that it is valid.

On January 31, LayerZero received 37.58% of the vote to become Uniswap’s bridge protocol for cross-chain governance between Ethereum and BNB Chain, coming in second behind Wormhole. On March 30, Gnosis announced that LayerZero would integrate with its multi-bridge platform, Hashi, to further increase the security of blockchain bridges.

Cointelegraph Accelerator and bitsCrunch Startup Program join to aid NFT projects

Through a new initiative, Cointelegraph Accelerator and the bitsCrunch Startup Program aim to help startups in the NFT data space by providing free data tools.

As nonfungible token (NFT) trading volumes begin to pick up again in Q1 2023 and marketplaces battle it out for a piece of the pie, more projects are coming into the space to assist market actors with infrastructure and analytical tools. And with evidence of wash trading and other abuse by bad actors becoming apparent, there is a demand for forensic tools to aid traders and investors in making informed, financially secure decisions.

Cointelegraph Accelerator is assisting in further developing the NFT sector by teaming up with bitsCrunch’s startup program to help developers and startups in their journey. Through the joint initiative, members will participate in and reap the benefits of both initiatives.

Image_0

Founded in 2013, Cointelegraph is a long-standing player in the world of cryptocurrency and blockchain media. Cointelegraph Accelerator launched in 2023 and works with early-stage Web3 projects to boost their growth by leveraging its access to a native Web3 audience, marketing expertise and a broad network of industry partners.

Working in the field of analytics, bitsCrunch provides NFT data solutions across multiple blockchains, adding transparency to the sector by identifying wash trading and more. In February 2022, bitsCrunch landed $3.6 million in a funding round, thanks to investments from firms such as Coinbase Ventures and Animoca Brands.

The bitsCrunch startup program helps early-stage companies and developers, giving accepted participants free (or low-cost) access to its solutions through its platform and APIs. Additionally, participants receive help from bitCrunch as they navigate its tools and get early access to updates.

The collaboration between the bitsCrunch startup program and Cointelegraph Accelerator will provide synergy as the pipelines of the participating projects will be combined, allowing them fast-track access to the respective partner’s program if they comply with the criteria. Members of the BitsCrunch startup program will also be eligible for media coverage on Cointelegraph through discounted, special media packages.

European DeFi startups saw 120% increase in VC investment in 2022: Data

Despite the ongoing tumultuous market conditions, venture capital investments in European crypto startups hit an all-time high of $5.7 billion in 2022.

2022 was a turbulent year for the crypto space, from an ongoing bear market and high-profile collapses of some of the industry’s most prominent players, like Terra and FTX. Despite the setbacks, venture capital (VC) investors continued to show support for crypto startups.

According to a new study released by European investment firm RockawayX, VC investment in crypto startups based in Europe reached its all-time high in 2022, with $5.7 billion invested

European decentralized finance startups hit $1.2 billion in 2022 — a 120% increase from the previous year’s investments of $534 million.

Viktor Fischer, the CEO of RockawayX, pointed out that the crypto market is cyclical. During the 2018 winter, “the total digital asset market cap fell by 80%, but startup funding activity held steady.”

“Investments made when digital asset prices were depressed materialized in tech and usage traction alongside ‘bull market’ price recoveries.”

Europe is also home to the highest number of crypto startups (3,977), according to the headquarters location.

However, it falls behind the United States in the number of startups with over a million dollars of funding and companies with a value of over $1 billion, knowns as unicorns.

Cumulative number of crypto startups by HQ location. Source: RockawayX

Top global investors in European startups include Animoca Brands, Coinbase, Blockchain Capital and the Digital Currency Group. 

Related: Banking crisis pushed over $286B to money market funds in two weeks: Report

In Europe, investment in startups that provide financial services made up more than half (52%) of all investments, with infrastructure and Web3 making up 32% and 16%, respectively.

Crypto VC investment by sector in Europe (2022). Source: RockawayX

However, compared with 2021, investment in financial service-based startups declined by 19%, and infrastructure grew by 24%.

Europe’s growing prominence as a crypto-friendly region comes as lawmakers in the European Union finalize the highly anticipated Markets in Crypto-Assets (MiCA) regulations. 

The regulations have been postponed twice by the EU due to translation issues. Laws passed in the EU must be translated into all 24 official languages of the member states.

At the time of writing, a final vote on the MiCA rules is set for April 2023.

Magazine: Crypto winter can take a toll on hodlers’ mental health

Over 100 VCs, investors voice solidarity with Silicon Valley Bank

Approximately 125 VCs and investors signed a statement supporting Silicon Valley Bank to limit the fallout of the bank’s collapse and the subsequent impact on tech companies.

As the 40-year-old banking institution, Silicon Valley Bank (SVB), winds down operations, numerous venture capitalists (VCs) and investors joined hands and decided to cushion the impact in case the bank “were to be purchased and appropriately capitalized.”

Approximately 125 VCs and investors signed a statement supporting SVB to limit the fallout of the bank’s collapse and the subsequent impact on tech companies. The venture firms included Sequoia Capital and General Catalyst.

A group of investors for high-profile firms met over Zoom in a series of meetings, disclosed a Bloomberg report. Hemant Taneja, the CEO of General Catalyst, initially revealed the joint statement from several VCs, showing support for the bank. It read:

“In the event that SVB were to be purchased and appropriately capitalized, we would be strongly supportive and encourage our portfolio companies to resume their banking relationships with them.”

In parallel, startup incubator Y Combinator posted a petition demanding “depositors to be made whole, and for regulation to prevent this catastrophe.”

According to Y Combinator CEO Gary Tan, the petition — directed toward regulators including United States Treasury Secretary Janet Yellen and Federal Deposit Insurance Corporation chairman Martin Gruenberg — scored signatures from roughly 2,800 founders and 180,000 employees at the time of writing.

“Everyone understands that we have a role to play in trying to calm the situation,” Taneja told Bloomberg. However, disputing this drive to save SVB, prominent Indian entrepreneur Ashneer Grover reminded Taneja that banks don’t get saved by passing bureaucratic, United Nations-type joint resolutions — taking a dig at the mindset of pouring money on a problem in the hopes of fixing it. “It requires intent and balls of steel!” he concluded.

Related: Silicon Valley Bank’s UK branch shut down by Bank of England

Hours after USD Coin (USDC) lost its peg to the U.S. dollar, unconfirmed reports about a resolution momentarily brought back the token’s prices to nearly $1.

7-day chart of USDC/USD price. Source: CoinMarketCap

Although the reports are currently unverified, multiple sources confirm that many different paths to resolution are in the works and that depositors will get back “at least 50% of their deposits” in the coming week.

BitDAO’s Mantle Core proposes $200M for Web3 fund

Mantle Core is an Ethereum layer-2 network developed by the BitDAO ecosystem. The fund aims to boost the adoption among developers and DApps.

A proposal seeking to create a $200 million fund dedicated to early-stage Web3 startups was submitted on Feb. 26 by Mantle Core on BitDAO’s governance forum. The ecosystem fund aims to boost the adoption of Mantle’s network among developers and Dapps. 

Mantle is an Ethereum layer-2 network developed by the BitDAO ecosystem. According to the proposal, a capital pool of $200 million would be deployed within the Mantle ecosystem over the next three years. BitDAO’s treasury would provide $100 million in USD Coin (USDC), while another $100 million would be supplied by external matching capital from “strategic venture partners.”

Funds that have expressed interest in participating include Dragonfly Capital, Pantera, Folius Ventures, Play Ventures Future Fund, Spartan, Lemniscap, Selini Capital, Cadenza Ventures and QCP Capital, according to Mantle’s proposal.

If approved, the Mantle EcoFund and venture partners will participate in projects with 1:1 co-investment ratio. Web3 startups raising pre-seed, seed, and series A round will be targeted by the ecosystem fund.

The fund is proposed to have a three-year active investment period, plus two years of optional extension, a Mantle spokesperson told Cointelegraph by email. The initial fund operator is proposed to be Mirana Ventures, Bybit and BitDAO’s venture partner, with an investment committee comprising representatives from Mirana Ventures, Mantle, BitDAO and Bybit.

“The fund targets to invest in more than 100 projects deployed on Mantle and have a multiple on invested capital (MOIC) of 1.5x of cumulative performance through the fund’s lifecycle,” Mantle’s spokesperson said.

EcoFund proposal summary from Mantle Core. Source: BitDAO’s governance forum. 

Management fees would be “industry standard,” with a 2% fee to support operational expenses of the EcoFund team, including sourcing, due diligence, legal, portfolio support and fund administration.

Across the crypto industry, similar initiatives aim to drive adoption and innovation. Last year, Ethereum scaling solution Polygon launched a $100 million fund aimed at improving access to decentralized finance, onboarding users and accelerating adoption.

London emerges as world’s most crypto-ready city for business — research

An examination of eight key data points determined London to sport the highest crypto readiness to entice businesses and start-ups.

Along with pro-crypto regulations, mainstream adoption of cryptocurrencies requires a supporting infrastructure that can allow the general public access and exposure to the ecosystem. When considering eight key indicators around taxes, ATMs, jobs and events in crypto, London stands at the top as the most crypto-ready city in the world for businesses and start-ups.

United Kingdom Prime Minister Rishi Sunak’s vision to “ensure the U.K. financial services industry is always at the forefront of technology and innovation” is on the right path, research conducted by Recap shows. An examination of eight key data points determined London to sport the highest crypto-readiness to entice businesses and start-ups.

Top 20 crypto-ready cities in the world. Source: Recap

As shown above, leading metropolitan cities such as Dubai and New York made it to the top three in the list. However, Hong Kong, which was positioned as the most crypto-ready country in 2022, fell to seventh place in the research.

Top 50 crypto hubs, city-wise comparison. Source: Recap

The above list shows the top 50 major cities with an infrastructure ready for the mass adoption of cryptocurrencies.

Some key factors considered in the study include the total number of crypto-specific events, crypto-related jobs, crypto-specific companies and the number of crypto ATMs. Some of the non-crypto considerations include quality of life, research and development spending as a percentage of gross domestic product and capital gains tax rate.

Of the lot, London is home to the most people working in crypto-related jobs — an indication of higher interest among the general public in the crypto ecosystem. However, other cities overshadow London in some metrics, strengthening the case for the global adoption of cryptocurrencies.

Related: Bitcoin nodes data: Frankfurt houses the largest city-wide network

Steering forward in the quest to stay at the forefront, the Bank of England and the His Majesty’s Treasury highlighted the need to launch a central bank digital currency by 2030.

Cointelegraph previously reported that sources claim that the “digital pound” roadmap is set to be introduced by mid-February. The U.K. reportedly experienced a 35% drop in cash and coin payments in 2020, indicating a trend toward cashless transacting.

Cointelegraph’s Accelerator Program launches and is seeking Web3 startups

The program aims to help Web3 companies boost their media presence, community growth and brand awareness.

The Web3 space is growing rapidly, and new startups are emerging daily. Overall investment into Web3 projects skyrocketed to $30 billion in 2021 and $36 billion in 2022, even amid the market crisis. While many projects have good ideas and a strong value proposition to bring to the space, this is a challenging field riddled with competition and a lack of trust from the broader audience.

Cointelegraph has established itself as a leader in the digital asset, Metaverse and emerging technologies media business since 2013, and is now looking to help other rising stars reach their full potential. Cointelegraph is delighted to introduce its Accelerator Program — a startup booster leveraging Cointelegraph’s capabilities as a strong media and strategic partner for promising Web3 companies.

Paul Solntsev, Head of Cointelegraph Accelerator, shared:

“We are excited to expand our product suite with the Accelerator Program, bringing more knowledge and education to our worldwide audience, especially regarding emerging tech startups and evolutions in Web3. We welcome companies with strong convictions and innovative projects to apply for the program and join our partner network to bring long-lasting value to the industry.”

Cointelegraph Accelerator will leverage the expertise of the global Cointelegraph team, counting more than 150 people working and developing media products in 11 languages. The program targets decentralized finance (DeFi), non-fungible tokens (NFTs), GameFi, Web3 social, cross-chain and layer-2 solutions, and other segments of the broader Web3 industry. The program has already onboarded more than a dozen companies, and has now publicly opened the application process for new candidates to join.

What is the Cointelegraph Accelerator Program?

While many accelerator programs focus on advisory followed by monetary investments, Cointelegraph takes a different route. Through the Accelerator Program, participants will be able to receive contributions from Cointelegraph in the form of media products that are available on the platform’s ecosystem. The media offerings are diverse and include standard advertorial products as well as individually tailored special projects, educational materials, native content integrations and much more.

One of the program’s key features is that it will be run by a separate commercial arm that is completely independent of Cointelegraph’s editorial team of journalists, and startups will be able to participate in the program in exchange for their projects’ native tokens or equity, subject to specific conditions. By doing so, Cointelegraph will align its interest toward the projects’ success and growth in token value.

The program’s strategic support will normally run from 9 to 24 months and will be based on the startup’s roadmap milestones, marketing and strategic goals.

With long-term success in mind, the Accelerator Program aims to bring significant, long-lasting brand exposure to participating projects. Cointelegraph will also leverage its vast partner network to offer comprehensive, 360-degree marketing strategy support to the program’s portfolio of projects.

This support comes in various shapes and forms. Depending on each individual project’s needs, Cointelegraph can offer support not only in marketing and branding but also with introductions to investors, exchanges, market makers, technological partners, and online and offline events.

How to participate

Projects that can take part in the Accelerator Program are usually between the pre-seed and series A stage and need to have either built a minimum viable product or launched a working product. A well-outlined roadmap and project documentation with clearly defined utility for the token is also required.

In order to become part of the Cointelegraph Accelerator Program, projects should visit the official Accelerator Program website, where they can familiarize themselves with what Cointelegraph offers as a recognized media leader and brand-establishment partner, and then apply.

Ideally, Cointelegraph is looking to support projects in their early stages of development that have already designed a product ready for market. For startups that have a strong team and a valuable product, and are looking to access one of the largest audiences in the space with an established network of investors and other partners, then the Accelerator Program is the right choice.

Building a sustainable Web3 future together

As the crypto space grows and evolves, Web3 is steadily inching toward becoming globally accessible. However, startups still need help to secure a smooth entry point, a solid following, and create a dedicated community around their products.

Cointelegraph is set on pushing Web3’s development further, and partnering up with innovative companies is the way to go. Cointelegraph is excited to be part of this future and cannot wait to see what Web3 startups have in store.

Cointelegraph’s Accelerator Program offers solid media and brand support for startups to take advantage of. As the crypto space continues to grow, establishing oneself as a recognizable name is of utmost importance, and Cointelegraph is here to help.

Registration for the Accelerator Program is open now for building the future of Web3 together.

2023 could be a rocky year for crypto venture investments: Galaxy Research

Around $30 billion was invested into crypto and Web3 startups in 2022, but will it be repeated this year?

Last year was a big one for crypto venture capital despite multiple high-profile meltdowns and the FUD (fear, uncertainty, and doubt) tsunami that followed. However, the funds may not flow as easily this year, a crypto researcher warns.

The number of deals and amount invested by venture firms into Web3 and crypto startups was a little over $30 billion in 2022, according to Galaxy Research

Galaxy’s head of firmwide research, Alex Thorn, described it as a “monster year” that was only just eclipsed by the $31 billion in VC investments in 2021.

However, in a Jan. 5 report, Thorn stated that macroeconomic and crypto market conditions led to significant investment drawdowns in Q3 and Q4. This will likely continue into 2023, until macro and crypto market conditions improve.

Thorn noted that there were 2,900 venture deals in 2022, though the fourth quarter saw the fewest deals and the lowest capital invested in two years.

If this trend continues, crypto and Web3 firms may struggle to raise funds in 2023, Thorn suggested.

“The macro, monetary, and crypto asset environment portends a difficult year ahead for all involved.”

He added that declining company valuations and stricter demands from investors will bring about a more difficult fundraising environment for entrepreneurs.

“Startups will need to be laser-focused on fundamentals, taming operational expenses and driving revenue in 2023,” he continued.

The United States regulatory environment will also have implications since America still dominates the crypto-startup ecosystem.

More than 40% of all crypto venture capital deals last year involved a U.S.-headquartered startup, according to the report.

“The continued importance of the U.S. to these markets, and its leading position, provide ample reason for U.S. policymakers to clarify and codify rules and regulations for the emerging space.”

Related: Investors chase Web3 as blockchain industry builds despite bear market

Investor dispositions and crypto markets are cyclical, however.

Gene Frantz, a general partner at Google and Alphabet’s independent growth fund CapitalG, told Forbes last month that the 2023 year-end outlook and headlines will look a lot better than today’s.

“The current news cycle may be rough, but persistence and innovation combined with an improving economic outlook will restore the optimism that has always defined our [venture capital] industry.”

In a Jan. 5 report, Crunchbase also alluded to a slower 2023 for venture funding across all sectors. In 2022, global venture funding fell 35% from 2021, but the crypto sector remained buoyant for the year, offering a glimmer of hope for the year to come.

Axelar launches $60M startup ecosystem program

The program aims to accelerate the development of decentralized applications and protocols to replace centralized exchanges.

The proof-of-stake (PoS) blockchain Axelar launched on Dec. 19 a $60 million startup funding program dedicated to accelerating the development of decentralized applications and protocols that can replace centralized exchanges. The initiative is backed by over 15 blockchain investors.

Dubbed Axelar Ecosystem Startup Funding Program, the initiative was designed to foster the development of Web3 applications addressing global issues that cannot be solved by the centralized internet. To qualify for funding, projects must also safeguard digital sovereignty, security and privacy, and work to onboard masses easily without unnecessary friction between specific blockchains or tokens, noted the company.

Sergey Gorbunov, Axelar co-founder and CEO, told Cointelegraph about the development:

“2021-2022 saw an unprecedented influx of new developers into Web3. In 2023, we expect to see less quantity, but more quality. For those who have the conviction and the capability to build truly permissionless systems, the collapse of FTX only fuels their determination. The best developers in Web3 are no longer content to cede onramps to entities that operate “blockchain” services run on a database. They are more committed than ever to solving problems of digital sovereignty, privacy and access that the centralized web can’t solve — and delivering those solutions on infrastructure that can onboard masses, seamlessly.”

The funding is linked to the Axelar Grant Program, which was launched in 2022 and provided grants to over 50 projects, approximately 33% of which were able to raise seed or pre-seed funding. “Variables like market conditions may impact deal flow, but the Axelar Ecosystem Funding Program aims to accelerate that rate of funding for projects in the Axelar ecosystem — whether they are in the Grant Program or not — in 2023,” noted Gorbunov. 

Related: Security and interoperability, the challenges ahead of Web3 mass adoption

The program is supported by a group of blockchain investors, including Blockchange, Chorus One, Collab+Currency, Cygni, dao5, DCVC, Divergence Ventures, Dragonfly Capital, Lemniscap, Morningstar Ventures, Nima Capital, Node Capital, North Island Ventures, Rockaway Blockchain Fund and SCB 10X.

The program aims to establish a connection between investors and developers building interchain dApps. Development partners include Arbitrum, Circle, Osmosis and Polygon.