Crypto Enthusiasm Fuels Accelerator Influx for Web3 Startups

Amid the recent surge in interest and excitement surrounding cryptocurrencies, several Web3 startups are turning to accelerator programs for support and advantages. These programs offer founders mentorship and guidance in exchange for an early equity stake in their companies. One prominent accelerator program is Y Combinator, based in San Francisco, which has produced successful crypto firms like Coinbase and OpenSea. Another well-known entity, a16z, a leading tech venture capital fund, has just announced the lineup for its spring 2024 crypto startup accelerator. The selected 25 startups will undergo a ten-week mentorship program in London led by the a16z crypto team. Projects in this accelerator range from Farcaster infrastructure to decentralized food delivery and zero-knowledge passport authentication. Startups participating in a16z crypto’s accelerator receive $500K from a16z in exchange for 7% equity, and previous alumni include Flashbots and Phantom.

Continuing with the trend, the organization behind the layer-1 blockchain Avalanche has launched its own exclusive accelerator program called Codebase. This accelerator is reserved for startups developing on Avalanche and will provide investments ranging from $500,000 to $1 million per startup by Colony Lab, a decentralized venture capital fund focusing on AVAX. Helika, a Web3 gaming infrastructure company, has partnered with Pantera, Spartan Capital, Sfermion, and other venture capital firms to allocate up to $50 million to startups participating in its newly established gaming accelerator.

As venture capital activity in the crypto space picks up pace, Crypto-native venture firm 1kx has announced a successful $75 million fundraising round, while Hack VC recently closed a round worth $150 million. Sam Lehman, principal at Symbolic Capital, emphasized the important role played by strong crypto accelerators in fostering community and connections among founders within the network-centric Web3 sphere. Lehman also highlighted the emergence of new accelerators driven by funds aiming to establish their brand and quickly deploy capital. He cautioned that some accelerators may engage in predatory practices, taking advantage of startups by offering attractive terms in exchange for excessive control. Founders are advised to carefully consider the terms and value they would receive before accepting an accelerator’s offer.

Investment activity in Web3 gaming has been steadily increasing in recent times. For example, 0G Labs successfully raised $35 million in a pre-seed funding round on March 25, with participation from over 40 crypto-native institutions, including Hack VC and Blockchain Builders Fund. The growing interest in the crypto gaming sector reflects its potential for significant growth and development in the near future.