Venture capital funding to blockchain and cryptocurrency startups and firms dropped by 29 per cent to $6.5 billion in the second quarter of this year from $9 billion in the first quarter, amid wider market volatility that caused prices to crash.

Investors scaled back crypto investments due to macroeconomic pressures and concerns about crypto valuations and stablecoins.

Here are 5 crypto-based firms that were able to pull off sizeable funding rounds amidst investor-funding shifting away from centralized cryptocurrency exchanges.

Chart: Emmanuel Oyedeji / | Source: Techloy Research (October 2022)
  • Hyperlane is a blockchain-focused startup that provides developers with a messaging application programming interface (API) and software development kit (SDK) to easily build apps that can be accessed from any blockchain has raised $18.5 million in its seed funding round. Galaxy Digital, CoinFund, Circle, Figment, Blockdaemon, Kraken Ventures, and NFX invested in the seed funding round.
  • Messari, a New York-based cryptocurrency analytics firm has raised $35 million in its Series B funding round led by Brevan Howard Digital, to support its product development efforts. Messari is a crypto-focused firm that is helping investors, regulators, and the public to make sense of crypto-based asset classes and is also building data tools to provide insights for investments and decision-making. It aims to support using crypto to democratize access to information, it claims.
  • Yellow Card Financial, a pan-African cryptocurrency exchange platform launched in Nigeria in 2019, raised $40 million in its Series B funding round led by Polychain Capital, a crypto-focused investment firm. The platform provides users in Africa with access to Bitcoin (BTC), Ethereum (ETH), stablecoins, and other cryptocurrencies. Valar Ventures, Sozo Ventures, Castle Island Ventures, Fabric Ventures, DG Daiwa Ventures, and others invested in the funding round.
  • Reku, formerly, an Indonesia-based crypto asset marketplace has raised $11 million in its Series A funding round. Founded in 2017, Reku provides the least fees on the market and focuses on newcomers and experienced crypto traders. It creates products that guide users to seamless and smart investing, alongside educational features for first-time traders on its platform. The funding round was led by AC Ventures, with participation from Coinbase Ventures and Skystar Capital.
  • Magna, a token management platform has raised $15 million in its seed round funding at a $70 million valuation led by Tiger Global and Tusk Venture Partners, with participation from other investors. The web3-focused platform is solving a pain point that founders and organizations face today in managing tokens for their employees and stakeholders. Shima Capital, Circle Ventures, Solana Ventures, Polygon Ventures, Avalanche Labs, and Galaxy Labs, alongside individual investors like Balaji Srinivasan, Messari's Ryan Selkis, and DJ Steve Aoki participated in the funding round.