VC Roundup: The Rise of Blockchain Gaming, DAO Management, and Asset Tokenization

Bitcoin (BTC) and the broader cryptocurrency market have offered little solace in recent weeks as macroeconomic headwinds and the implosion of the Terra ecosystem continue to reverberate. However, if we ignore the current price action, we observe a growing industry while also attracting significant capital investments from major investors. The latest venture capital (VC) roundup highlights the continued growth of Web3 games, metaverse apps, and even decentralized finance (DeFi) protocols.

Andreessen Horowitz Supports Ireverent Labs

Blockchain video game developer Irreverent Labs has raised $40 million from venture capital firm Andreessen Horowitz (a16z) to further develop its immersive play-and-earn game Mecha Fight Club. Arianna Simpson, general partner at Andreessen, described the game's "quirky" premise in a blog post: "Robot roosters and hens battle it out in a hilarious combat sport that's part MMA, part cybernetic." Pets, part Gundam, part Mortal Kombat, from the twisted humor of Family Guy, Monty Python and South Park."

Canadian tech education firm raises $7 million for Metaverse Engine

Coding bootcamp company Lighthouse Labs recently closed a $7 million seed round to further develop what it calls an "open metaverse navigation engine." The round saw participation from some of blockchain’s largest venture capital firms and investors, including Accel, BlockTower, and Animoca Brands. Lighthouse Labs is developing a platform that allows users to search for places, events and experiences from an open metaverse. Lighthouse co-founder and CEO Jonathan Brun said that accessing the metaverse will soon evolve from a gaming experience to a more web-like experience.

N3TWORK Studios Closes Series A Financing

Blockchain game publisher N3TWORK Studios has closed a $46 million Series A round to expand its footprint in the Web3 gaming space. Specifically, the funding will help N3TWORK further develop and launch its first two Web3 games, Legendary: Heroes Unchained and Triumph. The Series A round was led by Griffin Gaming Partners, with participation from Galaxy Interactive, Kleiner Perkins, KIP, Floodgate, and LLL Capital.

Global hacker movement gets backing from blockchain VCs

DoraHacks, a hacking movement funding Web3 developers, has closed a $20 million funding round led by FTX Ventures and Liberty City Ventures. Other investors include Circle Ventures, Gemini Frontier Fund, Crypto.com Capital, Amber Group and Sky9 Capital. DoraHacks will use the funding to launch several initiatives, including Dora DAO, a decentralized grantmaking community, and a new venture fund that will invest in emerging technology startups.

DeFi protocol raises $30 million

DeFi liquidity protocol iZUMi Finance has closed a $30 million funding round to expand its ecosystem and launch a new decentralized exchange on the BNB chain. Roughly one-third of the funds were raised through bond certificates on Solv Protocol, a platform enabling the creation of new financial instruments represented in the form of NFTs.

DAO management platform completes a round of financing

Common, a community governance initiative for decentralized autonomous organizations (DAOs), has raised $20 million to expand its platform and further decentralize its operations. Common enables users to create, manage and govern their own blockchain communities. The company claims to have 500 active communities, including crypto projects dYdX, Axie Infinity, Solana, and Polygon.

Centrifuge Partners with BlockTower

DeFi protocol Centrifuge has partnered with blockchain venture capital firm BlockTower to accelerate the financialization of real-world assets on-chain. To support the initiative, the partners secured a $3 million Vault Token Sale from traditional and crypto investors. Many see the incorporation of real-world assets as an important step in further cementing DeFi’s role in mainstream finance. Centrifuge co-founder Lucas Vogelsang said his firm’s partnership with BlockTower aims to “accelerate the adoption of DeFi in institutional capital.”