Blockchain operations are increasingly relying on more traditional funding from well-known venture funds to take advantage of these strategic stakeholders, rather than seizing crowdfunding opportunities that became popular during the last wave of blockchain hype.
Funding Summary: Concordium, StakeWise and Automata Reveal Private Capital From Leading Funds
In a marked departure from the last wave of crypto startups that focused on raising public capital in the form of ICOs (Initial Coin Offerings), token sales, and IPOs, today’s advancing blockchain initiatives are increasingly leveraging private capital Venture funds. Although the amounts granted do not exceed the billions raised through projects over the past few years, the latest developments are generally positive for companies, funds and users.
A blockchain VC investment leverages the expertise and due diligence of the fund itself, adding more credibility to the underlying project. Accordingly, companies are turning to these more traditional funding agencies to help build the project’s reputation and improve their credentials.
Enterprise Blockchain enters the fundraiser
As business interest in blockchain continues to grow, the decentralized blockchain has completed a private token sale worth EUR 10 million to help the blockchain expand its presence in the corporate sector.
Concordium, which recently announced a partnership with Geely Group, plans to use the funds to help large companies adopt blockchain in multiple areas after rigorously testing its ID concept at the protocol level. The blockchain, which can support smart contracts, self-sovereign IDs, and more, plans to launch its mainnet in the second quarter.
Smaller sums don’t mean less significant projects
Even if the amounts are smaller compared to previous crypto fundraisers, the operations that private funds receive are by no means insignificant and inherently reflect the changing infrastructure of the entire ecosystem.
Stakeeum Stakeout Protocol Stakewise is one of the organizations that recently closed a private funding round. The ETH2 staking protocol is close to launching the mainnet after an early adopters campaign and a modest private round of funding worth just $ 2 million. The most recent funding after Collider Labs seed capital was led by Greenfield One along with Collider Ventures, Gumi Cryptos, Lionschain Capital and other private investors.
Another project is Automata Network, a leading data protection-oriented middleware protocol. A joint donation of $ 1 million came from a consortium that includes Alameda Research, Divergence Capital, Genesis Block Ventures, IOSG Ventures, and KR1.
The company, which is focused on adding complementary Web3 data protection capabilities and infrastructure to existing projects, intends to use these funds to further develop product research and development while increasing the community’s footprint and engagement in the Automata Network.
Do you see blockchain companies returning to crowdfunding in the future as the market matures and trust is regained? Let us know what you think in the comments section below.
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