Growing Crypto Enthusiasm Spurs Web3 Startups to Join Accelerators

Last Updated on April 1, 2024

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Key Takeaways:

  • Venture capital interest in Web3 gaming is surging, with accelerator programs playing a crucial role in providing mentorship and funding to startups, as evidenced by the involvement of prestigious entities like Y Combinator and Andreessen Horowitz.
  • Andreessen Horowitz (a16z) has launched a crypto startup accelerator, offering $500,000 for a 7% equity stake to 25 startups across various sectors, including gaming and decentralized applications, for a 10-week program in London.
  • The sector’s investment momentum is further highlighted by significant funding rounds and partnerships, such as the Avalanche Foundation’s Codebase accelerator and Helika’s collaboration with Pantera Capital and Sfermion, offering substantial financial backing to emerging Web3 gaming startups.

Investment in Web3 gaming is on the rise, a trend reflected in the increasing number of startups joining accelerator programs amid a burgeoning crypto bull market.

These programs offer vital mentorship and guidance, often exchanging early equity for their services.

Notably, Y Combinator in the United States has supported several high-profile crypto firms, including Coinbase and OpenSea.

Andreessen Horowitz (a16z) recently unveiled its spring 2024 crypto startup accelerator lineup, introducing 25 startups to a 10-week mentorship program in London, spearheaded by its crypto team.

The selected projects span a range of innovations, from Farcaster infrastructure to decentralized food delivery and zero-knowledge passport authentication. a16z offers $500,000 for a 7% equity stake in each startup, with past participants including Flashbots and Phantom.

Furthermore, on November 9, 2023, the Avalanche Foundation and Ava Labs launched the first cohort for their Codebase accelerator, promising investments of $500,000 to $1 million.

Similarly, Helika, a Web3 gaming infrastructure firm, has partnered with notable venture capital entities like Pantera Capital and Sfermion to provide up to $50 million in funding through its Helika Accelerate program.

This resurgence of venture capital interest in crypto is evident with 1kx’s recent $75 million fundraising round and Hack VC’s $150 million round in February.

Symbolic Capital’s Sam Lehman stresses the importance of crypto accelerators in building community and warns founders to be cautious of potentially predatory terms from some accelerators.

The Web3 gaming sector has also witnessed significant investment activity, with 0G Labs securing a $35 million pre-seed funding round supported by over 40 crypto-native institutions, underscoring the sector’s growing appeal and potential for innovation.

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Efe Bravo, a seasoned journalist, delivers compelling insights into the cryptocurrency and blockchain industry.

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