Amidst the rise of the crypto bull market, accelerator programs have become a popular choice for Web3 startups looking to advance their ventures with the support of eager investors. These programs offer mentorship and guidance in exchange for early capital investment. For example, prominent accelerator program Y Combinator, based in the United States, has made investments in notable crypto firms like Coinbase and OpenSea.
Appetite for Startups Rises
In a recent announcement on March 26, Andreessen Horowitz (a16z) revealed the lineup for its 2024 spring crypto startup accelerator. This 10-week mentorship program, based in London and managed by the a16z crypto team, will involve 25 startups. Business partner Jason Rosenthal shared details about varied projects such as Farcaster infrastructure, decentralized food distribution, and zero-knowledge-backed passport identity verification. Web3 startups accepted into a16z’s accelerator program are offered $500,000 in exchange for a 7% equity stake. Notable participants include Flashbots and Phantom.
Additionally, on November 9, 2023, the Avalanche Foundation and Ava Labs unveiled the first cohort of startups selected for their Codebase accelerator program. This initiative plans to invest between $500,000 and $1 million in the chosen startups. Helika, a Web3 gaming infrastructure company, in partnership with Pantera Capital, Spartan Capital, Sfermion, and other venture capital firms, have pooled up to $50 million to support startups joining their new Web3 gaming accelerator, Helika Accelerate.
Venture Capital in Crypto Market
With the increasing crypto bull market, there is a rejuvenation in venture capital activities. Notable instances include crypto venture firm 1kx securing $75 million in a recent fundraising round, and Hack VC completing a $150 million funding round in February. Sam Lehman, director of Symbolic Capital, emphasized the importance of robust crypto accelerators in fostering a sense of community among founders navigating the network-centric Web3 landscape.
While the rise of new crypto accelerators is promising, Lehman pointed out concerns about potential predatory practices among some accelerators, cautioning founders about accepting terms that may not align with the value they receive in return. Investment activities in Web3 gaming have also shown a significant uptick, with 0G Labs successfully completing a $35 million pre-seed funding round on March 25. This round attracted participation from over 40 crypto companies, including Hack VC and the Blockchain Builders Fund.
