Priya patelTLDR:
– Crypto VCs are investing heavily in AI startups at the beginning of 2024.
– AI-connected startups are leading the way in early 2024 startup funding.
Crypto VCs have started the year with significant investments in AI startups, reflecting the view that AI will be a transformative force in technology. Many of these startups do not yet have revenue-generating products, causing some to draw parallels to the blockchain boom. Nevertheless, investor interest in AI is strong. Several AI-connected startups have already secured funding in 2024, highlighting the growing importance of AI in the startup ecosystem.
ArenaX Labs, a gaming studio, raised $6 million for its AI Arena game. The game aims to use gaming as a medium to teach players how to use AI, allowing them to train AI bots through imitation learning. The round was led by Framework Ventures and included participation from SevenX Ventures, Xterio, FunPlus, and Moore Strategic Ventures. Framework co-founder Michael Anderson praised ArenaX for creating products that encourage people to learn to train AI through play.
CharacterX raised $2.8 million to continue building its synthetic social network. The mobile app allows users to chat with different AI chatbots with unique backstories. The funding round was co-led by Lightspeed Venture Partners, Spark Digital Capital, and INCE Capital. Spark Digital Capital also participated in a $3.5 million funding round for AI marketplace Ta-da. Ta-da aims to sell data for AI companies to train their models and utilizes blockchain technology for transparency and cost efficiency.
Lugano, Switzerland is launching an incubation program for regional entrepreneurs building on DFINITY’s Internet Computer network. Participants in the program will work with DFINITY mentors and can receive up to $85,000 in funding. However, they must create a legal entity in Lugano to receive more than $25,000 of the total sum. Switzerland has become known as “crypto valley” due to its crypto-friendly regulations and banks.
Other notable fundraises include Pontem raising $6 million for its studio helping developers build in Move, a programming language first developed by Meta for its Diem blockchain. Tune.FM, a web3 music streaming platform and music NFT marketplace, secured a $20 million investment from LDA Capital. Gaming studio SkyArk received a $15 million investment led by Binance. Crypto custodian Finoa announced a $15 million strategic round led by Maven and Balderton.
