Why Tracking VC Activity Matters for Web3 Founders
With Q3 and Q4 2024 seeing a noticeable shift in investor sentiment and activity, knowing who is investing—and what they are investing in—can give your startup a strategic edge. This article dives deep into the trends shaping the crypto VC landscape over the past two quarters and presents a detailed list of the top 10 most active VCs, complete with insights into their investment strategies and key deals that reflect their focus.
Whether you're building in DeFi, infrastructure, NFTs, or gaming, this guide will provide clarity on which VCs are worth your pitch deck in the current market environment.
Q3-Q4 2024 VC Activity Overview: Trends and Comparisons
The third and fourth quarters of 2024 have shown encouraging signs of recovery in the crypto investment landscape, marking a rebound from the cautious sentiment seen earlier in the year. After a somewhat subdued Q2, marked by regulatory uncertainties and cautious funding rounds, Q3 and Q4 witnessed a return of investor confidence.
Here’s a snapshot of the trends that shaped this period:
- Deal Volume and Funding Amounts: According to data from DefiLlama and Crunchbase, Q3 saw a 25% increase in total funding volume compared to Q2, with a particularly strong uptick in early-stage funding for DeFi and infrastructure projects. By Q4, the momentum continued, with notable mega-rounds signaling renewed appetite for larger investments.
- Sectoral Focus: Infrastructure projects continued to dominate investor interest, especially those addressing scalability, interoperability, and developer tooling. Additionally, gaming and metaverse startups received increased attention, while NFTs maintained steady traction in niche markets.
- Regional Activity: A surge of funding activity came from Asia-based VCs, particularly in markets like Hong Kong and Singapore, driven by favorable regulatory developments.
Comparative Insights: While Q2 felt like a period of recalibration for many investors, Q3 and Q4 brought a more optimistic outlook. The number of active funds rose by nearly 30%, and the average deal size increased, reflecting growing confidence in Web3’s long-term potential.
For Web3 founders, this shift highlights a more vibrant and competitive funding environment heading into 2025. Now, let’s turn to the top 10 VCs leading the charge.
Top 10 Most Active Crypto VCs in Q3-Q4 2024
Binance Labs
Binance Labs is the venture capital and incubation arm of Binance, the world’s largest cryptocurrency exchange. Since its inception in 2018, Binance Labs has been instrumental in funding and mentoring blockchain startups, helping them leverage Binance’s global ecosystem to scale rapidly.
Focus: Web3 infrastructure, DeFi, blockchain-based gaming, and projects bridging traditional industries with blockchain.
Key Highlight: With 19 deals closed in Q3 and Q4 2024, Binance Labs has demonstrated its strong commitment to nurturing early-stage projects and driving innovation in Web3.
Notable Deals in Q3-Q4
1. Sahara Labs
- Funding: $38M Series A
- Why it matters:
Sahara Labs is building privacy-focused decentralized identity (DID) solutions using zk-SNARK technology. Binance Labs’ investment supports Web3 infrastructure by addressing user privacy and secure identity verification—critical components for scaling adoption.
2. Hemi Labs
- Funding: $15M Seed Round
- Why it matters:
Hemi Labs provides tools for game developers to integrate blockchain into gaming. This deal underscores Binance Labs’ interest in expanding GameFi infrastructure and onboarding traditional gaming studios into Web3.
Polychain Capital
Founded by Olaf Carlson-Wee in 2016, Polychain Capital is one of the first crypto-native venture capital funds, specializing in blockchain protocols and token-based investments. With its deep technical expertise and focus on decentralized technologies, Polychain has been a pioneer in identifying and backing projects with strong long-term potential.
Focus: Blockchain protocols, DeFi, Layer 1 and Layer 2 solutions, and Web3 infrastructure.
Key Highlight: With 12 deals closed in Q3 and Q4 2024, Polychain continues to focus on infrastructure projects that enable scalability, usability, and decentralization. For Web3 founders, Polychain’s involvement often brings not just capital but also valuable strategic insights on token design and decentralized governance.
Notable Deals in Q3-Q4
1. PIP Labs
- Funding: $80M Series B
- Why it matters:
PIP Labs is building a micropayment infrastructure for Web3, allowing users to send and receive payments in crypto directly through social media platforms. This aligns with Polychain’s focus on practical blockchain applications that integrate seamlessly with existing user behaviors, driving mass adoption.
2. Lombard
- Funding: $16M Seed Round
- Why it matters:
Lombard is a decentralized asset management protocol designed for DAOs and institutional investors. Polychain’s investment highlights its commitment to supporting DeFi innovations that cater to more sophisticated financial ecosystems, enabling DAOs to manage their treasuries more effectively.
a16z Crypto (Andreessen Horowitz)
Andreessen Horowitz (a16z) is one of the most influential venture capital firms globally, with its crypto arm launched in 2021 to drive Web3 adoption. a16z Crypto is known for its vast financial resources and hands-on operational support, offering startups not only funding but also guidance on scaling, tokenomics, and governance.
Focus: DeFi, Layer 2 scaling solutions, Web3 infrastructure, blockchain gaming, and consumer-facing applications.
Key Highlight: With 17 deals closed in Q3 and Q4 2024, a16z Crypto continues to focus on ecosystem-enabling technologies and consumer adoption of blockchain. For Web3 founders, a16z provides unparalleled support in building sustainable business models, token economies, and navigating regulatory landscapes.
Notable Deals in Q3-Q4
1. Morpho Labs
- Funding: $50M Series B
- Why it matters:
Morpho Labs is a next-gen DeFi protocol focusing on optimizing yield across lending platforms like Aave and Compound. By integrating off-chain computation and zk-rollups, Morpho Labs enhances user yields while reducing gas costs. a16z’s investment underscores its commitment to DeFi infrastructure and improving capital efficiency in decentralized lending.
2. Balance Games
- Funding: $30M Series A
- Why it matters:
Balance Games is a blockchain-based gaming studio developing Play-to-Own (P2O) titles, a new model combining NFTs with user ownership of in-game economies. a16z’s investment reflects its focus on gaming innovations that prioritize player retention and long-term value, rather than speculative gameplay.
Pantera Capital
Founded in 2013, Pantera Capital is one of the earliest investment firms to focus exclusively on blockchain technology and cryptocurrencies. Known for its deep-rooted presence in the industry, Pantera has a reputation for backing projects that bring real-world utility to blockchain. Its team combines traditional finance expertise with blockchain knowledge, making it a trusted name among founders looking to scale transformative projects.
Focus: DeFi, institutional-grade blockchain solutions, Web3 gaming, and Layer 1 and Layer 2 protocols.
Key Highlight: With 7 deals closed in Q3 and Q4 2024, Pantera Capital remains a top choice for projects requiring strategic investment and industry expertise. For Web3 founders, Pantera is particularly valued for its ability to help startups bridge the gap between crypto and traditional finance.
Notable Deals in Q3-Q4
1. Sentient
- Funding: $85M Series B
- Why it matters:
Sentient is an AI-powered blockchain analytics platform designed to help enterprises and DeFi protocols improve decision-making. By leveraging on-chain data with advanced machine learning, Sentient provides actionable insights for risk management, regulatory compliance, and market optimization. Pantera’s investment highlights its focus on enabling institutional adoption of blockchain through cutting-edge analytics tools.
2. Azra Games
- Funding: $42M Series A
- Why it matters:
Azra Games is a blockchain-based gaming studio developing AAA-quality games with integrated NFT economies. Their flagship project focuses on immersive storytelling, player ownership, and interoperable digital assets. Pantera’s investment aligns with its strategy to support high-quality blockchain games that can attract mainstream gamers and redefine in-game economies.
Lemniscap
Lemniscap is a crypto-focused investment firm founded in 2017, with a mission to support early-stage blockchain startups that are redefining the boundaries of decentralized technology. Known for its keen eye on emerging trends, Lemniscap is often an early backer of projects with strong technical foundations and disruptive potential. The fund provides startups with more than just capital, offering strategic guidance and industry connections to help them grow.
Focus: DeFi, GameFi, tokenized assets, decentralized infrastructure, and governance protocols.
Key Highlight: With 6 deals closed in Q3 and Q4 2024, Lemniscap continues to focus on early-stage investments that combine innovation with real-world applications. For Web3 founders, Lemniscap is a valuable partner in navigating early-stage challenges, including market positioning and tokenomics.
Notable Deals in Q3-Q4
1. Cytonic
- Funding: $8M Seed Round
- Why it matters:
Cytonic is building a decentralized data storage protocol optimized for AI-powered applications. By integrating blockchain with AI workloads, Cytonic enables privacy-preserving data sharing, a key challenge for enterprises. Lemniscap’s investment signals its interest in the convergence of blockchain and AI, supporting infrastructure that enhances enterprise adoption.
2. Puffpaw
- Funding: $6M Seed Round
- Why it matters:
Puffpaw is a Web3 gaming studio developing casual NFT-based games designed for mobile platforms. Their flagship game, "Paw Adventures," focuses on simplicity and user-friendly onboarding, catering to a wide audience beyond traditional crypto enthusiasts. Lemniscap’s investment reflects its belief in accessible blockchain gaming as a key driver of mainstream adoption.
1kx
1kx is an early-stage crypto-focused investment firm with a mission to back founders building open, trustless, and permissionless Web3 systems. The firm is known for its strong emphasis on decentralization and its hands-on approach to helping startups develop sustainable token economies and governance structures. 1kx is a favorite among founders looking for strategic insights and a deep understanding of token design.
Focus: Decentralized infrastructure, Layer 1 and Layer 2 protocols, cryptographic tools, and tokenomics development.
Key Highlight: With 11 deals closed in Q3 and Q4 2024, 1kx continues to invest in projects building the technical backbone of Web3. For Web3 founders, 1kx is recognized for its expertise in token engineering and its ability to connect startups with the broader crypto ecosystem.
Notable Deals in Q3-Q4
1. Celestia
- Funding: $100M Series B
- Why it matters:
Celestia is a modular blockchain network focused on separating consensus and data availability layers to enable highly scalable and customizable blockchains. By reducing the technical complexity of building blockchains, Celestia allows developers to deploy app-specific chains, known as "rollups," with ease. 1kx’s investment highlights its focus on foundational Web3 infrastructure that addresses scalability and interoperability challenges.
2. Fabric Cryptography
- Funding: $33M Series A
- Why it matters:
Fabric Cryptography is pioneering advanced cryptographic tools for Web3 applications, including zk-SNARKs and post-quantum encryption. Their solutions enhance security and scalability for decentralized protocols, making them indispensable for the next generation of blockchain networks. 1kx’s investment underscores its commitment to cutting-edge cryptography as a critical enabler for decentralized systems.
Blockchain Capital
Blockchain Capital is one of the oldest and most respected venture firms in the crypto industry, established in 2013. The fund has been at the forefront of investing in blockchain technology, with a history of backing some of the most transformative projects in the space. Known for its focus on long-term value and deep industry expertise, Blockchain Capital actively supports startups through capital, mentorship, and strategic guidance.
Focus: DeFi, infrastructure, digital payments, and regulatory-compliant crypto projects.
Key Highlight: With 9 deals closed in Q3 and Q4 2024, Blockchain Capital is doubling down on projects with real-world use cases and advanced cryptographic tools. For Web3 founders, Blockchain Capital stands out as a partner with extensive experience navigating regulatory hurdles and scaling businesses globally.
Notable Deals in Q3-Q4
1. Fabric Cryptography
- Funding: $33M Series A
- Why it matters:
Fabric Cryptography develops state-of-the-art cryptographic solutions, including zk-SNARKs and quantum-resistant encryption. Their tools are designed to secure and scale decentralized systems for enterprise-grade applications. Blockchain Capital’s investment reflects its focus on strengthening the technical foundation of Web3 and preparing the ecosystem for future challenges like quantum computing.
2. Yellow Card
- Funding: $33M Series B
- Why it matters:
Yellow Card is a crypto payment platform focusing on providing easy fiat-to-crypto on-ramps in emerging markets, particularly across Africa. Its mission to make digital assets accessible aligns with Blockchain Capital’s interest in promoting global financial inclusion. This investment strengthens Yellow Card’s position as a leader in crypto adoption in underserved regions.
Paradigm
Paradigm, co-founded by Fred Ehrsam (ex-Coinbase) and Matt Huang, is a venture firm renowned for its deep technical expertise and strong focus on transformative blockchain projects. Known for its collaborative approach with founders, Paradigm specializes in supporting groundbreaking ideas that push the boundaries of Web3 innovation. The firm is widely respected for its long-term bets on high-impact startups and its ability to guide them through complex technical and regulatory landscapes.
Focus: Layer 1 and Layer 2 protocols, DeFi, advanced cryptographic research, and Web3 infrastructure.
Key Highlight: With 4 deals closed in Q3 and Q4 2024, Paradigm prioritizes quality over quantity, investing in projects with strong potential for systemic impact. For Web3 founders, Paradigm’s reputation for technical mentorship and strategic foresight makes it a sought-after partner for ambitious ventures.
Notable Deals in Q3-Q4
1. Ithaca
- Funding: $20M Series A
- Why it matters:
Ithaca is developing a decentralized treasury management platform for DAOs, enabling efficient fund allocation, budgeting, and risk management. Paradigm’s investment highlights its focus on improving DAO infrastructure and supporting the maturation of decentralized governance models, a cornerstone of Web3’s evolution.
2. Sorella Labs
- Funding: $7.5M Seed Round
- Why it matters:
Sorella Labs is pioneering decentralized computing solutions for AI applications, leveraging blockchain to ensure transparency, privacy, and data security in machine learning workflows. Paradigm’s backing reflects its interest in the intersection of blockchain and AI, which is becoming a critical area for Web3 innovation.
Hack VC
Background: Hack VC is a crypto-focused venture capital firm that invests in early-stage Web3 startups building foundational technologies for the decentralized economy. Known for its founder-friendly approach, Hack VC has carved a reputation as a strong supporter of startups with innovative ideas and bold visions. Its team brings a wealth of experience in venture building and crypto, helping projects navigate everything from technical challenges to go-to-market strategies.
Focus: Decentralized infrastructure, blockchain scalability solutions, privacy tech, and crypto-enabled financial services.
Key Highlight: With 16 deals closed in Q3 and Q4 2024, Hack VC remains a prolific investor in the Web3 ecosystem, focusing on projects with real-world utility and unique approaches to solving key technical challenges. For Web3 founders, Hack VC offers not only capital but also deep operational expertise and access to a robust crypto network.
Notable Deals in Q3-Q4
1. Solayer
- Funding: $12M Series A
- Why it matters:
Solayer is building decentralized cloud storage solutions optimized for large-scale enterprise use. Its protocol combines decentralized file storage with encryption tools to create a highly secure and scalable infrastructure. Hack VC’s investment highlights its focus on supporting Web3 infrastructure projects that aim to replace traditional, centralized systems like Amazon S3.
2. Nillion
- Funding: $25M Series A
- Why it matters:
Nillion is pioneering a new cryptographic protocol known as "Nil Messaging," which enables secure multi-party computation without requiring blockchain consensus. This groundbreaking technology facilitates privacy-preserving data sharing for enterprises and Web3 applications. Hack VC’s investment reinforces its focus on privacy tech and cutting-edge cryptographic innovations that address key limitations of blockchain technology.
Framework Ventures
Framework Ventures is a leading venture capital firm specializing in Web3 and decentralized finance (DeFi). Known for its thesis-driven approach, the firm invests in projects that shape the infrastructure and applications of the decentralized web. Framework Ventures doesn’t just invest capital—it actively collaborates with founders, offering hands-on support in token economics, product development, and community building.
Focus: DeFi, blockchain gaming, decentralized social platforms, and Web3 infrastructure.
Key Highlight: With 11 deals closed in Q3 and Q4 2024, Framework Ventures has doubled down on projects that promote Web3 adoption through innovative applications and tools. For Web3 founders, Framework is a strong partner that helps projects refine their business models while fostering active communities.
Notable Deals in Q3-Q4
1. Glow Labs
- Funding: $30M Series A
- Why it matters:
Glow Labs develops loyalty and rewards programs for Web3 businesses, enabling projects to incentivize users with on-chain rewards seamlessly. Their platform offers an API-based solution for integrating blockchain-based rewards with traditional apps, bridging the gap between Web2 and Web3. Framework Ventures’ investment underscores its focus on projects that simplify user engagement and drive mass adoption.
2. Towns
- Funding: $25M Series A
- Why it matters:
Towns is building decentralized, tokenized community platforms that combine the functionality of Discord with Web3-native tools like wallet integration and DAO governance. With Framework’s backing, Towns aims to empower communities to own and control their networks, aligning perfectly with Web3 principles.
Conclusion: Actionable Insights for Web3 Founders
The resurgence in VC activity during Q3 and Q4 2024 is a strong signal of confidence in the future of Web3. For founders, this list not only highlights the most active investors but also provides insights into the sectors and types of projects gaining traction. Whether you’re building in DeFi, infrastructure, gaming, or beyond, aligning your vision with the focus of these top investors could be the key to securing your next round of funding.
As you prepare your pitches for 2025, consider the trends and strategies outlined here, and don’t hesitate to reach out to investors who share your vision. InnMind is your best friend when it comes to your fundraising journey, from helping with pitchdeck to actual connection to investors and pitch sessions with actively investing VC’s. The Web3 funding landscape is evolving, and now is the time to position yourself for success.
Read also:
Ivan Orlov
Ivan Orlov
Ivan Orlov
