Web3 Firms Attract $6 Billion in VC Funding This Year

Venture capital (VC) funding in Web3 projects has gone up in 2024, reaching a total of $6 billion as the crypto markets have made a significant comeback. With over $600 million invested in October alone, VC interest in Web3 innovations remains strong, and analysts are expecting even more investments as the year concludes.

Crunchbase’s Web3 Tracker points out a particularly active third quarter during which VCs poured $1.4 billion into Web3 ventures. A lot of this funding has been directed to companies that are working at the intersection of Web3 and artificial intelligence (AI), showing a strong broader interest in projects that bring advanced technology to real-world applications. Experts believe that this trend stresses how VCs see Web3 as a foundation for future innovations in data security, decentralized networks, and sustainable energy solutions.

Just last month, two major Web3 startups raised a lot of funds, catching the eye of investors who were excited about innovative projects in the space. Glow, a decentralized physical infrastructure (DePIN) project, secured $30 million from Framework Ventures and Unison Square Ventures. The aim of Glow is to decentralize energy grids worldwide by partnering with solar farms that are struggling to turn a profit. Pooling solar energy generated from various farms allows Glow to create a network where both investors and operators are incentivized through tokenized rewards and carbon credits. These credits are particularly valuable as they help reduce carbon emissions by replacing traditional energy sources with sustainable solar power. The project’s unique approach highlights how Web3 can support environmentally impactful initiatives.

Another impressive project in October was Nillion, a blockchain platform that is focused on privacy. The firm was able to raise $25 million in funding. Nillion is developing privacy-enhancing technologies (PETs) to secure high-value data in decentralized networks thanks to the support of firms like Hack VC, Distributed Global, and Hashkey.

Using techniques like multi-party computation (MPC) and homomorphic encryption, the platform from Nillion allows sensitive data to be processed securely without needing traditional centralized servers. For users needing additional options, Nillion offers non-blockchain methods for securing data, thus making it adaptable to different privacy requirements. The project’s backers include well-known figures from the crypto space, signaling a robust interest in data privacy innovations in Web3.

Beyond Glow and Nillion, there are other Web3 startups that have received notable investments this year. They include fitness app Moonwalk, backed by Binance; workforce platform Craftt, which raised $2 million; and payments network Borderless.xyz, which received $3 million. This shows how VC funding is diversifying across a range of Web3 applications. These projects stress the market’s excitement around decentralized platforms that can drastically transform everyday services like payments, workforce management and personal fitness.

It is likely that as those startups come up with novel applications for Web3 technologies, they will attract many businesses like NextPlat Corp. (NASDAQ: NXPL) (NASDAQ: NXPLW) that are seeking cutting-edge solutions to serve their clients better.

NOTE TO INVESTORS: The latest news and updates relating to NextPlat Corp. (NASDAQ: NXPL, NXPLW) are available in the company’s newsroom at https://ibn.fm/NXPL

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