Web3 Startups Witness Increased Activity Post Crypto Surge

The resurgence of the crypto market has sparked a flurry of activity in the Web3 startup ecosystem, with many turning to accelerator programs as a means to navigate the burgeoning landscape and secure vital resources for growth.

Web3 Accelerator programs have emerged as a cornerstone for early-stage startups, offering invaluable mentorship, guidance, and networking opportunities in exchange for equity. Notable examples include Y Combinator, which boasts alumni like Coinbase and OpenSea among its success stories.

As reported earlier by TheCoinRise, Daehong Communications, the South Korean advertising subsidiary of the Lotte Group, has joined forces with the Aptos Foundation to embark on a Web3-powered strategic global expansion. 

25 Selected Web3 Startups

Recently, on March 26, Andreessen Horowitz (a16z) unveiled the lineup for its spring 2024 crypto startup accelerator. This 10-week program, based in London and led by the a16z crypto team, will provide mentorship to 25 selected startups. 

Projects such as Farcaster infrastructure, decentralized food delivery, and zero-knowledge passport authentication are set to benefit from this initiative. In exchange for 7% equity, startups in the a16z accelerator receive $500,000, with alumni including Flashbots and Phantom.

Financial Funding

Similarly, the Avalanche Foundation and Ava Labs introduced the first cohort of startups in its accelerator, Codebase, on November 9, 2023. This program offers investments ranging from $500,000 to $1 million, providing crucial financial backing to emerging projects.

Meanwhile, Helika, a Web3 gaming infrastructure company, has collaborated with Pantera Capital, Spartan Capital, Sfermion, and other venture capital firms to launch Helika Accelerate. This accelerator program aims to allocate up to $50 million to startups in the Web3 gaming space, reflecting the growing interest in this sector.

“The CSX Spring 2024 participants beat out a very competitive field to get here. We received applications from across the world, and the cohort includes founders from eight different countries: Israel, Japan, Poland, Romania, Switzerland, the United Arab Emirates, the United Kingdom, and the United States,” said a16z.

Potential of Web3 Startups 

The increase in venture capital activity within the crypto space further underscores the significance of accelerator programs. Firms like 1kx and Hack VC have recently closed significant fundraising rounds, highlighting investor confidence in the potential of Web3 startups.

However, amidst this boom, caution is advised. Sam Lehman, principal at Symbolic Capital, warns of potential predatory practices among accelerators. Founders must carefully evaluate the terms offered by these programs to ensure they align with their long-term interests.

In parallel, investment activity in Web3 gaming has surged, with 0G Labs securing a $35 million pre-seed funding round on March 25. This demonstrates the increasing appetite among investors for projects operating within the gaming sector of the Web3 space.