Leading venture capitalists Marc Andreessen, Galaxy Digital, and Accolade Partners have contributed to crypto venture capital (VC) firm 1kx’s latest fund. The new fund by 1kx focuses on crypto-based consumer applications, with about five investments already made. Founded by Lasse Clausen and Christopher Heymann in 2018, 1kx raised $75 million for the fund. Institutional interest in crypto is growing, evident from the recent approval of spot Bitcoin exchange-traded funds in the United States.

A report by PitchBook revealed a 2.5% increase in venture capital financing for crypto ventures in the fourth quarter of 2023 compared to the previous quarter. This marks the first rise in VC investments since March 2022. February's VC investments also demonstrate renewed corporate confidence in the blockchain sector, with funding announcements from various crypto ventures including Lava Protocol, Analog, Helika, Truflation, and Omega.

Andreessen Horowitz (a16z) announced a $100 million funding round for EigenLayer, Ethereum’s largest restructuring protocol by locked total value. Avail secured a $27 million seed funding round at the end of February, led by Founder Fund and Dragonfly, to boost Web3 data availability and consensus layers. Meanwhile, Immutable, in partnership with King River Capital and Polygon Labs, launched a $100 million fund named Inevitable Games Fund (IGF) to invest in blockchain games.

IGF made initial investments in seven blockchain games like Pixelmon, Guild of Guardians, Metalcore, and My Pet Hooligan, exclusively available on ImmutableX or Polygon. This emergence of funds and investments in the Web3 and blockchain sectors is reflective of the growing interest and trust in these technologies.