53 Web3 startups with the most potential in the eyes of 53 VCs

53 Web3 startups with the most potential in the eyes of 53 VCs

Despite the cryptocurrency market’s recent slump, VCs are backing Web3 entrepreneurs in areas such as NFTs and DeFi, and investors are continuing to back cryptocurrency startups aiming to transform industries such as finance and digital commerce. In fact, many of the most successful companies were born in challenging economic times, and perhaps some of the great Web3 companies of the future were born in this crypto winter.

So which crypto and Web3 startups have the most potential in 2022? We asked 53 big VCs to see what they recommend.

1、Art Blocks

Recommended by: Ethan Daly, Shine Capital

Relationship: no interest

Total funding: $6.8 million

Introduction: Art Blocks is an NFT market whose biggest feature is the creation of algorithmically randomly generated art.

Why it’s on the list: In less than two years, Art Blocks has surpassed $1 billion in sales of primary and secondary NFTs and has gained credibility in the art world. In June 2022, Art Blocks entered into a partnership with Pace Gallery, and has also helped high-profile digital artists such as Leo Villareal and John Gerrard sell work on its marketplace. Art Blocks impressed Ethan Daly, who describes himself as a “big fan of artists on the Art Blocks platform.”

2、Requestor

Recommended by: Matthew Beck, DCG

Relationship: Investor

Total Funding: Undisclosed

Introduction: Bittensor operates a decentralized network that provides incentives for creating and sharing AI machine learning models.

Why it’s on the list: Artificial intelligence has proven to be a gold mine, and Web3 offers a huge opportunity to optimize existing machine learning models, but there are consistent limitations in blockchain infrastructure and data storage – Bittensor Network will solve this question. In the words of Matthew Beck, “Bittensor will represent the supercomputer/neural network and smart market in the future.” 

3、Blockdaemon

Recommended by: Vic Singh, Eniac Ventures

Relationship: no benefit

Total funding: $430 million

Introduction: Blockdaemon builds infrastructure for blockchain development.

Why it’s on the list: Even after the cryptocurrency market crash, VCs have been keen to invest in Web3 tools — companies that provide key tools to keep blockchain applications running, and Blockdaemon is one of them. Mainly develops tools for managing validator nodes, the computing systems that power the blockchain.

4、Digital

Recommended by: Aaron Holiday, 645 Ventures

Relationship: Investor 

Total funding: $12 million

Description: Cion Digital makes tools for fintech companies to integrate cryptocurrencies into enterprise technology stacks.

Why it’s on the list: Cryptocurrencies are often misunderstood as a speculative asset with no practical use, but Cion Digital hopes to change the world’s misconceptions, the company’s solution can support enterprises to deal with the conversion of tokens to US dollars or other traditional currencies, so that They don’t have to manage cryptocurrencies in their own accounts, and Cion Digital has already partnered with companies such as car dealership service CarNow.

5、Clutch

Recommended by: Katie Palencsar, Anthemis Group and Cameron Peake, Financial Venture Studio

Relationships: Palencsar is an investor, Peake has no stake.

Total funding: $800,000 

Summary: Clutch has created a crypto wallet for Web3 newbies .

Why it’s on the list: Buying and selling cryptocurrencies requires a wallet app, but these apps are often not easy to set up and navigate, especially for cryptocurrency newbies, Clutch designed the wallet to be more crypto-friendly and offers Guide to using Web3.

6、Cred Protocol

Recommended by: Mira Christanto, Luno Expeditions

Relationship: Investor

Total Funding: Undisclosed

Introduction: Cred Protocol provides credit scoring tools for decentralized finance.

Why it’s on the list: Cred Protocol is reducing the need for over-collateralization and making DeFi “more accessible to people” by introducing the credit-scoring equivalent of a cryptocurrency on DeFi lending protocol Aave .

7、Crossmint

Recommended by: Cameron Peake, Financial Venture Studio; Marell Evans, Exceptional Capital

Relationship: Peake is the investor, Evans has no interest.

Total Funding: Undisclosed 

Introduction: Crossmint enables people to buy NFTs without a crypto wallet.

Why it’s on the list: Crossmint’s technology allows people to buy NFTs with a credit card without having to set up a special crypto wallet.

8、Dialect

Recommended by: Mercedes Bent, Lightspeed Venture Partners

Relationship: no benefit

Total funding: $5.5 million

Introduction: Dialect builds a Web3 messaging tool on the Solana blockchain.

Why it’s on the list: The messaging company is backed by Solana’s venture capital arm and Tiger Global, and has a partnership with Solana Mobile to build developer tools and messaging apps.

9、Disco.xyz

Recommended by: Rebecca Kaden, Union Square Ventures

Relationship: no benefit

Total Funding: Undisclosed

Summary: Disco makes tools for Web3 users to establish user identities in different services.

Why it’s on the list: One of the biggest annoyances of internet life is having to set up an account for every online service — or entrusting personal information to giants like Facebook and Google, and Disco.xyz’s commitment to decentralization and privacy can solve that question.

10、Doodles

Recommended by: Katelin Holloway, Seven Seven Six

Relationship: Investor

Total Funding: Undisclosed

Summary: Doodles operates a crypto community built around a collection of NFTs created by illustrator Scott Martin known as Burnt Toast.

Why it’s on the list: Doodles stand for inclusion and joy — two of the most valuable by-products of the Doodles community, and the company has demonstrated “appropriate utility in the NFT space.”

11、DressX

Recommended by: Kamran Ali, Inspired Capital

Relationship: no benefit

Total funding: $3 million

What it is: DressX operates a marketplace for digital fashion goods where clothes can be tried on on Metaverse platforms like Roblox and Meta. 

Why it’s on the list: The NFT craze proves that people are willing to pay for digital goods, and DressX, which sells digital fashion, has partnered with companies and brands like Dior, Fendi, and Balenciaga.

12、Dune Analytics

Recommended by: Ann Miura-Ko, Floodgate

Relationship: no benefit

Total funding: $79.4 million

Summary: Dune provides a cryptographic data analysis service that allows anyone to create and view dashboards that display real-time blockchain data.

Why it’s on the list: Dune has become the go-to source of data in the crypto world, where you can pull information directly from the blockchain and analyze it with a little programming skills.

13、Dynamic

Recommended by: Aaron Holiday, 645 Ventures

Relationship: no benefit

Total funding: $7.5 million

Summary: Dynamic provides tools for developers to integrate crypto wallets across different blockchains into their own applications.

Why it’s on the list: Dynamic primarily addresses cross-chain issues, enabling developers to create easier multi-chain user experiences.

14、Ejara

Recommended by: Jocelyn Cheng, Luno Expeditions

Relationship: no benefit

Total funding: $2.4 million

Introduction: Ejara is a crypto investment firm targeting the French-speaking countries of West Africa.

Why it’s on the list: Ejara brings Web3 financial services to the French-speaking countries of West Africa, popularizing cryptocurrency for customers and increasing financial inclusion on the continent.

15、Espresso Systems

Recommended by: Sam Rosenblum, Haun Ventures

Relationship: no benefit

Total funding: $32 million

Summary: Espresso Systems aims to enable Web3 developers to build applications at scale with minimal transaction fees, while protecting user privacy.

Why it’s on the list: Espresso Systems introduced a protocol for configuring privacy settings for digital assets, allowing users to keep their encrypted payments and transactions private while complying with industry regulations.

16、Ethereum Name Service

Recommended by: Christine Kim, Greylock

Relationship: no interest 

Total Funding: Undisclosed 

Introduction: ENS mainly provides decentralized domain name services for usernames, wallets and websites.

Why it’s on the list: Similar to domain names on the web, ENS is a way to create identities in Web3, not just random strings.

17、Euler

Recommended by: Lauren Kolodny, Acrew Capital

Relationship: no benefit

Total funding: $40.5 million from investors including Coinbase Ventures, Haun Ventures and Variant.

Introduction: Euler provides users with crypto asset lending and borrowing services.

Why it’s on the list: Euler isolates the riskiest assets from other pools of capital, a structure that helps prevent risk. Since its launch in December, Euler has issued nearly 6,000 loans, according to data from analytics platform Dune Analytics . Total borrowing was $2.56 billion.

18、Floor

Recommended by: Jessica Peltz Zatulove, Hannah Grey

Relationship: Investor

Total funding: $10 million 

Introduction: Floor is a mobile application for NFT owners to track the value of their collections.

Why it’s on the list: Floor is an essential tool for those interested in understanding the value of its cross-platform NFTs, with a founding team including Robinhood ‘s former crypto COO Christine Brown and investors including B Capital and Worklife Ventures Wait.

19、Glow Labs

Recommended by: Gabby Cazeau, Harlem Capital

Relationship: Investor

Total funding: $4.2 million

Introduction: Glow Labs services can be used to create NFTs to build communities around brands.

Why it’s on the list: Some industry analysts believe that the next use case for NFTs will be to build communities among owners, and Glow Labs has already started partnering with brands to build loyalty programs on the blockchain, such as Barbie and Forever 21.

20、Goldfinch

Recommended by: Nnamdi Okike, 645 Ventures; Mira Christanto, Luno Expeditions

Relationships: Neither benefit 

Total funding: $36.7 million 

Description: Goldfinch is a crypto lender providing financing services to clients in emerging markets.

Why it’s on the list: Founded in 2020 by two former Coinbase employees, Goldfinch has come a long way in leveraging crypto to enable financial inclusion in emerging markets, has provided over $100 million in loans, and has funded more than $100 million in loans in India, Mexico, and Nigeria, among others Country has more than 1 million users.

21、Goldsky

Recommended by: Ethan Daly, Shine Capital

Relationship: Investor

Total Funding: Undisclosed

Summary: Goldsky allows developers to build APIs to capture Web3 data and use it in any cryptographic application.

Why it’s on the list: Goldsky enables blockchain developers to create APIs for their applications, making it easier to transfer data from one platform to another. In addition to Shine Capital, the company’s investors include Dragonfly Capital and Slow Ventures.

22、Jito Labs

Recommended by: Steve Vassallo, Foundation Capital

Relationship: no benefit

Total funding: $12.1 million 

Summary: Jito Labs creates infrastructure that rewards those who validate transactions on the Solana blockchain while improving its performance and scalability.

Why it’s on the list: Jito Labs is built on the Solana chain to improve blockchain performance through a so-called “maximum extractable value” model and reward on-chain validators.

23、Lit Protocol

Recommended by: Vic Singh, Eniac Ventures

Relationship: Investor

Total funding: $2.3 million

Summary: Lit Protocol creates blockchain “control” tools for Web3 developers to efficiently manage content, software, and data access.

Why it’s on the list: Lit Protocol turns crypto wallets into passports to digital files and services, and uses a decentralized network to encrypt and decrypt data instead of keeping it in a centralized repository.

24、Magic Eden

Recommended by: Mercedes Bent, Lightspeed Venture Partners

Relationship: Investor

Total funding: $159.5 million

Introduction: NFT marketplace.

Why it’s on the list: In less than a year, Magic Eden has become a major OpenSea competitor with a $1.6 billion valuation, and they’ve carved out a niche in gaming and launched a fund to back it Web3 game developer .

25、Matter Labs

Recommended by: Matthew Beck, DCG

Relationship: no interest 

Total funding: $58 million 

Introduction: Matter Labs is the creator of zkSync , a technology that effectively improves the performance of the Ethereum blockchain.

Why it’s on the list: Matter Labs created a ZK Rollup called zkSync, designed to allow developers to build applications using the Ethereum native programming language while they benefit from enhanced performance and lower transaction fees.

26、Meow

Recommended by: Adams Conrad, QED Investors

Relationship: Investor

Total funding: $28.1 million

Summary: Meow provides money management services to Web3 businesses.

Why it’s on the list: Meow, which helps companies manage all the currencies they have on hand, including fiat and cryptocurrencies, was founded by ex-employees of the cryptocurrency exchange Gemini, and in addition to QED, Tiger Global and FTX are also investors.

27、NFT Bank

Recommended by: Rumi Morales, Digital Currency Group

Relationship: Investor

Total funding: $13.9 million

Summary: NFT Bank’s tools can be used to manage collections of NFTs and track their financial performance.

Why it’s on the list: The NFT Bank app uses a pricing algorithm that uses multiple data sources to provide up-to-date valuations, as well as tax and treasury management tools for DAOs .

28, Nibiru

Recommended by: Jules Miller, Mindset Ventures

Relationship: Investor

Total Funding: Undisclosed

Introduction: Nibiru is a decentralized trading blockchain that supports financial derivatives such as options and perpetual futures.

Why it’s on the list: Nibiru is one of the first incubating startups under Tribe Capital to support traditional financial institutions in building more sophisticated crypto financial instruments.

29、Notabene

Recommended by: Jocelyn Cheng, Luno Expeditions

Relationship: Investor

Total funding: $12.7 million 

Summary: Notabene helps businesses manage regulatory and counterparty risk in crypto transactions.

Why it’s on the list: Notabene helps crypto companies comply with the “travel rule,” which requires crypto companies to provide information about the senders and recipients of transactions that exceed certain thresholds.

30. OSOM

Recommended by: Edith Yeung, Race Capital

Relationship: no benefit

Total funding: $17.5 million

Summary: OSOM makes mobile phones and other devices that give users more control over their personal data.

Why it’s on the list: OSOM, born out of a defunct mobile phone company Essential, has partnered with Solana to launch the Android-based, cryptocurrency-focused Solana Saga phone.

31、Pinata

Recommended by: Christine Kim, Greylock

Relationship: Investor

Total funding: $21.8 million (according to Crunchbase data)

Summary: Pinata helps creators manage NFTs and related content generated around them.

Why it’s on the list: Pinata can effectively manage NFT projects, not just PFP images, but also content and different types of media such as games and music.

32、Protego Trust Bank

Recommended by: Mike Jones, Science  

Relationship: Investor

Total Funding: $104.1 million

Description: Protego is a trust bank that provides cryptocurrency custody, lending and trading services to fintech companies.

Why it’s on the list: Protego is a regulated crypto-finance firm with a board that includes current and former executives from traditional financial institutions like BNY Mellon and State Street, as well as crypto-native companies like Ripple and Digital Asset.

33、QuickNode

Recommended by: Marell Evans, Exceptional Capital

Relationship: Investor

Total funding: $46 million

Summary: QuickNode develops tools that can be used to create blockchain applications.

Why it’s on the list: QuickNode’s technology works on 16 blockchains, and its clients include OpenSea, Coinbase, and PayPal, and it’s backed by big investors like Tiger Global and SoftBank.

34、RabbitHole

Recommended by: Mike Duboe, Greylock

Relationship: Investor

Total funding: $21.6 million

Summary: RabbitHole provides cryptography and Web3 learning services, allowing contributors to gain skills while earning rewards.

Reason for making the list: Drawing on “earn while playing” games like Axie Infinity , RabbitHole created the “earn while learning” model, and has cooperated with many of the most famous protocols and Web3 projects, which can not only teach users new skills, but also Can help the project filter high-quality contributors.

35、Roi

Recommended by: Maya Bakhai, Spice Capital

Relationship: no benefit

Total Funding: Undisclosed

Summary: Roi has developed an app that allows users to easily trade stocks, buy and sell cryptocurrencies, and set prices for NFTs.

Why it’s on the list: Roi gives users access to a range of crypto financial services in one app, from buying and selling NFTs to staking tokens in DeFi.

36、Round21

Recommended by: Jessica Peltz Zatulove, Hannah Grey

Relationship: no benefit

Total funding: $250,000

Introduction: Round21 mainly sells sports digital collectibles , including NFTs and T-shirts.

Why it’s on the list: Round21’s early partners include the NFL, WNBA, and the National Women’s National Soccer Players Association, among others.

37、Safe

Recommended by: Tim Khoury, DCG

Relationship: Investor

Total funding: $100 million

Introduction: Safe, formerly Gnosis Safe, made a crypto wallet on the Ethereum blockchain that allows businesses and individual users to securely manage funds.

Why it’s on the list: Safe currently protects more than $100 billion in crypto assets, and its infrastructure has been “battle-tested and formally verified.”

38、Sardine

Recommended by: Ross Fubini, XYZ Capital

Relationship: Investor

Total funding: $24 million

Introduction: Sardine is a fraud detection and compliance platform for financial institutions and crypto companies.

Why it’s on the list: Security and compliance are top priorities for crypto companies, and Sardine works with traditional financial services and crypto-native companies to address concerns about fraud and scams.

39、Solend

Recommended by: Edith Yeung, Race Capital

Relationship: Investor

Total funding: $6.5 million

Introduction: Solend provides infrastructure services for digital asset transactions.

Why it’s on the list: Solend aims to improve the DeFi experience to help DeFi protocols increase adoption, and within 10 months of launch, Solend has over $450 million in assets.

40、Solidus Labs

Recommended by: Nnamdi Okike, 645 Ventures

Relationship: Investor

Total funding: $68.5 million

Description: Solidus Labs is a market monitoring and risk management platform that helps secure digital asset transactions.

Why it’s on the list: Solidus Labs, which launched the Crypto Market Integrity Alliance in partnership with companies like Coinbase, Robinhood, and Gemini, is becoming a “crypto market KOL.”

41、Spruce

Recommended by: Jules Miller, Mindset Ventures

Relationship: no benefit

Total funding: $41.5 million (according to Crunchbase data)

Introduction: Spruce allows people to store, control and verify their identity information on multiple blockchains.

Why it’s on the list: Spruce founders Gregory Rocco and Wayne Chang previously worked together at encryption software firm ConsenSys , which backed Y Combinator and Ethereal Ventures.

42、Station

Recommended by: Rebecca Kaden, Union Square Ventures

Relationship: Investor

Total Funding: Undisclosed 

Summary: Station builds tools to help digital workers collaborate on decentralized projects, products, and services.

Why it’s on the list: Station aims to “build a track for digital organizational operations in Web3,” and its tools will help organizations motivate contributors.

43、Sudoswap

Recommended by: Tim Khoury, DCG

Relationship: no benefit

Total Funding: Undisclosed

Introduction: Sudoswap is a decentralized NFT marketplace that uses an automated market maker model to set prices and facilitate transactions.

Why it’s on the list: In just a few months, Sudoswap has established itself in the NFT industry, with a model similar to Uniswap in the DeFi market .

44、Syndica

Recommended by: Kamran Ali, Inspired Capital

Relationship: Investor

Total funding: $12 million 

Summary: Syndica provides a backend fabric to support developers building decentralized applications on the Solana blockchain.

Why it’s on the list: Syndica builds core infrastructure in a high-potential, nascent crypto ecosystem and has already surpassed Stepn, Star Atlas, and Audius in customer growth in 2022.

45、Tactic

Recommended by: Grace Isford, Lux Capital

Relationship: Investor

Total funding: $2.6 million 

Introduction: Tactic is an encrypted accounting platform.

Why it’s on the list: Bookkeeping can be a daunting task for crypto companies, and cross-wallet financial activities and exchanges must be integrated with traditional accounting software, and Tactic can effectively solve this problem and optimize crypto companies’ accounting process.

46、Teleport

Recommended by: Steve Vassallo, Foundation Capital

Relationship: Investor 

Total Funding: Undisclosed

Introduction: Teleport is a decentralized ride-hailing platform that enables drivers to set their own service prices by voting.

Why it’s on the list: Teleport is disrupting ride-hailing giants like Lyft and Uber by giving drivers more control over pricing and giving riders a better customer experience.

47、The Tie

Recommended by: Rumi Morales, Digital Currency Group

Relationship: no benefit

Total funding: $9 million

Description: The Tie provides crypto market data and news to financial institutions.

Why it’s on the list: The Tie provides hedge funds, exchanges and other financial institutions with market data, analytical tools, and Web3 data for cutting-edge insights, aiming to be the Bloomberg terminal of the crypto industry.

48、TrueFi

Recommended by: Adams Conrad, QED Investors

Relationship: no interest 

Total funding: $40.5 million via token sale 

Introduction: TrueFi is a decentralized financial platform that provides unsecured loan services.

Why it’s on the list: TrueFi uses criteria such as on-chain credit scores to assess the creditworthiness of loans, helping borrowers improve capital efficiency and lenders better returns.

49、Utopia Labs

Recommended by: Maya Bakhai, Spice Capital; Lauren Kolodny, Acrew Capital

Relationship: Bakhai is the investor, Kolodny has no interest.

Total funding: $25.5 million

Summary: Utopia Labs provides DAOs with analytical tools for streamlining operations, payroll, and organizational financial reporting management.

Why it’s on the list: Utopia Labs customers include SushiSwap, Illuvium, Yield Guild Games, Badger, Lido , and Friends With Benefits, processing $15 million worth of payment transactions per month.

50、Verasity

Recommended by: Katie Palencsar, Anthemis Group

Relationship: no benefit

Total Funding: Undisclosed

Description: Verasity provides user engagement and verification services to esports, digital entertainment and ad technology companies.

Why it’s on the list: Veracity uses blockchain technology to prevent ad fraud and enhance the reputation of digital businesses.

51、WalletConnect

Recommended by: Grace Isford, Lux Capital

Relationship: no benefit

Total funding: $12.6 million

Summary: WalletConnect connects crypto wallets with decentralized applications.

Why it’s on the list: WalletConnect solves a key pain point in the crypto ecosystem: connectivity, making it easier for developers to build decentralized applications and more secure for users to log into their wallets, verify their identity, and connect with other users.

52、Women Rise

Recommended by: Katelin Holloway, Seven Seven Six

Relationship: no benefit

Total Funding: Undisclosed

Description: Women Rise is a series of NFTs created by artist Maliha Abidi.

Why it’s on the list: Women Rise has a strong social justice component, pledging to donate a portion of its sales to organizations like the Malala Fund, founded by Nobel Peace Laureate Malala Yousafzai.

53、Zora

Recommended by: Sam Rosenblum, Haun Ventures

Relationship: Investor

Total funding: $68.5 million

Summary: Zora allows creators, brands and developers to create NFTs and NFT marketplaces.

Why it’s on the list: Music startups like Catalog, Mint Songs, Spores, and Glass.xyz have built their own NFT marketplaces on Zora, bringing inclusive Web3 experiences to the community.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/53-web3-startups-with-the-most-potential-in-the-eyes-of-53-vcs/
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.

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