Another big month of big rounds. A startup needed to raise $200 million or more to break into this list for the April edition. April also saw a half-dozen rounds of a quarter-billion dollars or more, including a $1 billion round for an AI-enhanced biotech. Let’s take a look.

1. Xaira Therapeutics, $1B, biotech: The biggest round in April was really big. Xaira Therapeutics came out of stealth and announced it had secured more than $1 billion of committed capital from lead investors Arch Venture Partners and Foresite Capital — both of which jointly incubated the company — as well as several other big-name investors including Sequoia Capital and Lightspeed Venture Partners. The San Francisco-based biotech firm is led by founding CEO Marc Tessier-Lavigne, who previously served as president of Stanford University but resigned last year after questions arose concerning his scientific research. Xaira is the latest — although likely best-funded — startup to try to use AI models to find new drugs.

2. Pine Gate Renewables, $650M, energy: Pine Gate Renewables locked up a $650 million investment from Generate Capital, the Healthcare of Ontario Pension Plan and HESTA. The Asheville, North Carolina-based solar and energy storage product developer plans to use the new cash to help finance the creation of three gigawatts of clean energy infrastructure in communities across the United States by next year. Founded in 2014, the company has raised $1.7 billion, per Crunchbase.

3. PsiQuantum, $620M, quantum computing: PsiQuantum landed the biggest founding round thus far this year for any quantum startup, beating out Quantinuum’s $300 million equity fundraise at a pre-money valuation of $5 billion in January. The Palo Alto, California-based company landed a financial package of $620 million from the Australian Commonwealth and Queensland governments to build a quantum computer at a strategically located site near Brisbane Airport in Brisbane, Australia. Founded in 2016, the company has raised more than $1.3 billion, per Crunchbase.

4. Cyera, $300M, cybersecurity: While it is true cybersecurity funding has significantly slowed, it certainly has not dried up. Data security startup Cyera raised a $300 million Series C led by Coatue at a $1.4 billion valuation. The round nearly triples the New York-based startup’s valuation from its $100 million Series B last June that valued it at $500 million. Founded in 2021, Cyera has raised $460 million to date, per the company. Cyera offers a platform that helps security teams at companies understand what data they have and how it’s used, as well as how to secure it — all of which has become more important with companies relying on data to drive AI initiatives. The startup also uses AI in its platform to assess risks a company’s data represents regarding security, privacy and regulatory compliance.

5. Metsera, $290M, biotech: New York-based Metsera, a clinical-stage biopharmaceutical startup emerged from stealth last month with $290 million in funding led by Arch Venture Partners. The company is exploring medicines for obesity and metabolic diseases with a collection of oral and injectable incretin, nonincretin and combination therapies.

6. Rivos, $250M, semiconductor: Semiconductor startups are seeing big money, in part thanks to the explosion in generative AI. Santa Clara, California-based chip startup Rivos raised more than $250 million in April in a Series A-3 funding led by Matrix Capital Management. The company develops power-optimized chips targeting the data analytics and generative AI markets. Of course, chip startups have seen increasing interest recently. Late last month, Santa Clara-based optical interconnectivity startup Celestial AI raised a massive $175 million Series C led by Thomas Tull’s US Innovative Technology Fund. Also last month, Astera Labs — a Santa Clara-based developer of data center connectivity technology with use cases in generative AI — soared after its initial public offering on the Nasdaq.

7. Augment, $227M, artificial intelligence: AI coding startups are making a big splash. AI coding assistance startup Augment emerged from stealth last month and locked up a $227 million Series B round at a $977 million post-money valuation. The round included cash from the likes of Sutter Hill Ventures, Index Ventures and Lightspeed Venture Partners. The Palo Alto, California-based company helps developers and software teams by giving them AI coding assistance. Founded in 2022, Augment’s total funding now stands at $252 million, per the company, following its $25 million Series A led by Sutter Hill Ventures in January.

8. Monad Labs, $225M, blockchain: New York-based Monad Labs locked up the biggest Web3 funding round of the year thus far, collecting a $225 million funding round led by Paradigm. Monad is a layer-1 blockchain that is compatible with the Ethereum Virtual Machine but can process transactions using the same set of rules faster. The round is reminiscent of the 2021-22 era when layer-1 protocols like Aptos Labs raised big. Founded in 2022, the company has raised $244 million, per Crunchbase.

9. (tied) Blackrock Neurotech, $200M, neuroscience: Stablecoin issuer Tether invested $200 million in Blackrock Neurotech to take a majority stake in the brain-to-computer interface startup. The Salt Lake City-based company creates brain-to-computer interfaces and implants that allow people to control computers and neuroprosthetics. The company had only raised $10 million before the new round from Tether, according to Crunchbase. The round values Blackrock Neurotech at about $350 million, per Reuters. The deal is also the latest headline concerning brain-computer interface technology, which has been pushed by Elon Musk’s Neuralink. That company recently live-streamed a quadriplegic man playing video games using its implant and has raised nearly $700 million, per Crunchbase.

9. (tied) Rippling, $200M, human resources: HR startup Rippling wrapped up a huge $200 million round that valued the San Francisco-based startup at $13.5 billion. The deal also included a $590 million secondary offering for employees to sell their private shares to investors. The new equity round was led by Coatue. The company offers a workforce management platform that combines HR, information technology and finance to help customers streamline operations. The new round represents about a 20% uptick in valuation for Rippling, which was last valued at $11.3 billion in March 2023.

Big global deals

Xiara was the biggest raise of the month, but the runner-up came from China.

• Hozon, an electric-vehicle startup, locked up a $690 million venture funding round.

Methodology

We tracked the largest rounds in the Crunchbase database that were raised by U.S.-based companies for the month of April 2024. Although most announced rounds are represented in the database, there could be a small time lag as some rounds are reported late in the month.

Illustration: Dom Guzman

This is a weekly feature that runs down the week’s top 10 announced funding rounds in the U.S. Check out last week’s biggest funding rounds here.

At this point it’s fair to say the big, nine-figure round is back. Since February, this list has been made up of typically six or seven such rounds after months with usually just a couple such rounds every week. This week, there are eight $100 million-or-more rounds (almost nine!), including some massive raises. Investors are not afraid to write the big check right now for the right startup.

1. Cyera, $300M, cybersecurity: While it is true cybersecurity funding has significantly slowed, it certainly has not dried up. Data security startup Cyera raised a $300 million Series C led by Coatue at a $1.4 billion valuation. The round nearly triples the New York-based startup’s valuation from its $100 million Series B last June which valued it at $500 million. Founded in 2021, Cyera has raised $460 million to date, per the company. Cyera offers a platform that helps security teams at companies understand what data they have and how it’s used, as well as how to secure it — all of which has become more important with companies relying on data to drive AI initiatives. The startup also uses AI in its platform to assess risks a companies’ data represents regarding security, privacy and regulatory compliance.

2. Monad Labs, $225M, blockchain: New York-based Monad Labs locked up the biggest Web3 funding round of the year thus far, collecting a $225 million funding round led by Paradigm. Monad is a layer-1 blockchain that is compatible with the Ethereum Virtual Machine but can process transactions using the same set of rules faster. The round is reminiscent of the 2021-22 era when layer-1 protocols like Aptos Labs raised big. Founded in 2022, the company has raised $244 million, per Crunchbase.

3. Torl BioTherapeutics, $158M, biotech: It was just about a year ago that Los Angeles-based biopharmaceutical company Torl BioTherapeutics closed a $158 million Series B led by Goldman Sachs Asset Management. Well, the cancer-treating biotech is back this week after it closed a B-2 financing at another $158 million led by Deep Track Capital. The startup will use the new cash in the development of novel, antibody-based therapeutics to fight cancer. Founded in 2018, Torl has raised more than $350 million, per the company.

4. Guesty, $130M, hospitality: People love to travel and they seem to love to stay at short-term rentals. Guesty, a property management software platform for those rentals, raised a big $130 million Series F led by KKR India Asset Finance this week to help property managers keep up with that demand. The Covina, California-based startup operates in more than 80 countries and will use the fresh cash to continue its U.S. expansion. Founded in 2013, the company has raised nearly $411 million, per Crunchbase.

5. Platform Science, $125M, transportation: San Diego-based Platform Science, an edge application platform for transportation fleets, raised $125 million. The company did not name a lead investor, but investors in the round included Daimler Trucks and RyderVentures among others. The startup’s platform helps equip enterprise commercial fleets with mobile devices and applications for better flexibility, visibility and productivity. Founded in 2015, the company has raised nearly $323 million, per Crunchbase.

6. (tied) Collaborative Robotics, $100M, robotics: Santa Clara, California-based Collaborative Robotics locked up a $100 million Series B led by General Catalyst. Collaborative has raised over $140 million since being founded in 2022, per the company.

6. (tied) FloQast, $100M, accounting: Los Angeles-based FloQast, a finance and accounting operations platform, closed a $100 million Series E led by Iconiq Growth at a post-money valuation of $1.6 billion. Founded in 2013, the company has raised nearly $303 million, per Crunchbase.

6. (tied) Seaport Therapeutics, $100M, biotech: It is no surprise, as the dangers of depression and anxiety become more apparent in society, that more startups are looking to conquer the illnesses. Boston-based Seaport Therapeutics launched this week to do just that. The biotech startup raised a $100 million Series A co-led by Arch Venture Partners and Sofinnova Investments. The biotech company focuses on medicines for depression, anxiety and other neuropsychiatric disorders.

9. Nectero Medical, $96M, biotech: Tempe, Arizona-based Nectero Medical, a clinical-stage biotech startup developing therapies to treat aneurysmal disease, closed a $96 million Series D led by Norwest Venture Partners. Founded in 2017, the company has raised nearly $116 million, per Crunchbase.

10. Grow Therapy, $88M, healthcare: New York-based Grow Therapy, a software developer for the mental health industry, closed an $88 million Series C led by Sequoia Capital. Founded in 2020, the company has raised $178 million, per Crunchbase.

Big global deals

The second-biggest round of the week went to a European startup specializing in loans and investments.

• Spain-based Aquisgran, a financial services firm, raised a venture round worth nearly $277 million.

Methodology

We tracked the largest announced rounds in the Crunchbase database that were raised by U.S.-based companies for the seven-day period of April 6 to 12. Although most announced rounds are represented in the database, there could be a small time lag as some rounds are reported late in the week.

Illustration: Dom Guzman

The funding also includes previous and new investors including a16z crypto, Bain Capital Crypto and Distributed Global. 

The San Francisco-based startup is building tools in support of Worldcoin, an Ethereum-based token currently in beta. Its World ID platform is attempting to create unique digital identities — based on blockchain technology — for people by scanning their eyes with a small orb.

The startup has raised many questions surrounding AI, data and privacy. While such an identity platform could be useful as AI makes it more difficult to know who or what one is dealing with over the internet, the scanning of people’s eyes to create a digital identity and how that information could be used has raised privacy and data concerns.

Due to its decentralized nature and hopes to create true unique digital identities, Worldcoin also has been associated with being involved in the process of distributing a universal basic income if AI starts to eliminate massive amounts of jobs — something that also has caused debate.

“As we embark on the age of AI, it is imperative that individuals are able to maintain personal privacy while proving their humanness,” said Alex Blania, CEO and co-founder of Tools for Humanity. “In doing so we can help ensure that everyone can realize the financial benefits that AI is poised to deliver.” 

The company did not reveal a valuation, but an earlier report said it was looking to raise money at a $3 billion valuation.

Bucking the trend

While Tools For Humanity may have had a successful fundraise, that has not been the case for most crypto and Web3 startups.

Venture funding to VC-backed Web3 startups plummeted 82% in the first quarter of the year — dropping from $9.1 billion in Q1 of 2022 to only $1.7 billion, per Crunchbase data.

The funding number is the lowest total since the fourth quarter of 2020 — which saw only $1.1 billion — when many people had never heard of Web3.

VC-backed crypto startups saw just more than $800 million invested, the lowest total since more than $600 million was invested in Q1 2020.

Further reading:

Web3 Funding Continues To Crater — Drops 82% Year To Year

Illustration: Dom Guzman

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The round saw participation from nearly three dozen investors, including a16z crypto, Circle Ventures, OKX Ventures, OpenSea Ventures, Samsung Next and Sequoia Capital.

The Vancouver-based startup raised a $135 million Series A at a $1 billion valuation in March 2022 in a round co-led by a16z, Sequoia and the now-defunct venture arm of FTX — FTX Ventures.

LayerZero Labs is tackling the problem of interoperability among different blockchains. The company’s protocol allows for cross-chain messaging across countless blockchains.

“Imagine a future where a single user-facing application can harness the speed of Solana, the security of Ethereum, and the cheap file storage of Arweave,” said Ryan Zarick, co-founder and CTO, in a release. “This is our vision, made possible by the LayerZero protocol that seamlessly connects all blockchains and enables chain-agnostic applications to be built across various blockchains to create a best-in-class user experience.

“The days of choosing one chain to build on are over; the future is omnichain applications,” he added.

Big cash

LayerZero plans on using the new money to increase its headcount, push growth initiatives and grow its presence in the Asia-Pacific region. 

The round is one of the largest in the crypto and blockchain sector since FTX’s implosion in November. 

According to Crunchbase data, only Singapore-based Amber Group — which raised a $300 million Series C — and Germany-based Matter Labs — which closed a $200 million Series C — have seen bigger deals in the space since FTX collapsed, sending shockwaves through the crypto and blockchain ecosystem.

Related reading:

• Sam Bankman-Fried Received Billions From FTX-Related Entities
• Sam Bankman-Fried Faces New Charge Involving Conspiracy To Bribe Chinese Officials
• Bankman-Fried Indicted On Criminal Conspiracy And Fraud Charges; Sued Over ‘House Of Cards’

Illustration: Dom Guzman

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They’ve soared.

Bitcoin — the largest cryptocurrency by market cap — is up 40% since the year began, and ether — the second largest — is up 35%. While still substantially off their highs from November 2021, the rally is one of the best either has seen in the last year-plus.

However, venture capitalists and investors still seem tepid as ever on the market.

Thus far for the year, only $1.3 billion has come to VC-backed Web3 startups in 233 deals, per Crunchbase data. At that pace, final numbers for the quarter would even be lower than Q4 of last year, when Web3 funding cratered to $2.7 billion in 373 deals.

The first two quarters of 2022 saw $17.5 billion invested in Web3 startups, according to Crunchbase.

The largest round so far this calendar year includes a $125 million convertible round for Canada-based Blockstream, a blockchain technology solution for financial markets, and a $70 million Series C for Israel-based Chain Reaction, a blockchain startup focusing on privacy.

It takes a while

The venture numbers are not surprising, as it was always going to take more than just several weeks of an upswing on crypto prices for investors to migrate back to the sector — especially when you consider the lag time in announcing deals.

Venture capitalists and investors did not run away immediately from the space when crypto prices started to fall in early 2022, so they likely will not quickly flock back to all things Web3 even if this rally continues for the next few months.

With what we have seen in crypto — who knows where we will be in a couple months?

Related reading:

• Funding Down, Crypto Up
• Funding To Crypto Startups Plummets To Lowest Level Since Late 2020
• How VCs Invest In Crypto Will Be Changed By FTX’s Spectacular Fall
• Crypto M&A Slows As Its Own Type Of Winter Sets In

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The Miami-based startup’s recent round comes on the heels of its $35 million Series A raise in 2021. In the span of a year, QuickNode grew its user base 400% and currently provides infrastructure for 16 blockchains. 

The tangled web of Web3

The buzzy world of Web3 has grown since Ethereum co-founder Gavid Wood uttered the word in 2014 to describe a future of the internet that would entirely exist on the blockchain. 

In 2022, U.S.-based startups in the Web3 space raised around $2.3 billion, the sector’s best year ever and more than double what it raised in 2021, despite every other industry facing a sharp funding pullback. Web3 has led to the rise of companies like Block.one, a blockchain technology developer that raised $4.1 billion since it started in 2016. 

But the industry is facing a far more hostile reality today. Funding for Web3 startups nosedived by 74% in fourth-quarter 2022. FTX, the crypto trading network that raised billions of dollars only to go bankrupt in a public collapse, was one of several blockchain-related companies to struggle last year. 

Despite this, QuickNode said its revenue grew 300% in the last year. And in a statement, CEO Alex Nabutovsky called the road to Web3 inevitable.

“The industry is about to enter its next era, and with this raise, we are preparing for mass adoption of blockchain technology in 2023 and throughout the rest of the decade,” Nabutovsky said. “We are proud to help our customers scale to their full potential and move the industry forward.”

Illustration: Dom Guzman

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For the last two years, venture capitalists have been enamored with all things Web3 — a hot buzzword that encompasses everything from crypto startups to blockchain developers to decentralized tech builders. However, after a record-breaking 2021 which saw more than $30 billion invested in this burgeoning space, investors seem to be taking a pause.

Funding to VC-backed Web3 startups, as well as the number of deals, dropped to its lowest since the end of 2020, with the sector mirroring the venture market in general. 

The recently completed quarter only saw slightly more than $3.3 billion roll into startups in the space — nearly a 50% decrease from the previous quarter. That’s the lowest total since just about $1 billion went to startups in Q4 2020, and a far cry from the high of nearly $9.3 billion invested in Q4 last year.

Deal flow also dwindled in the third quarter, with only 408 deals announced. That’s more than 200 fewer deals from both Q4 2021 and this year’s Q1. It also marks the lowest number since Q4 2020 when only 262 deals were announced.

Thus far this year in total, investors have poured $17.7 billion into Web3 — well off pace to reach last year’s record $30 billion.

Big deals slow

One issue affecting Web3 funding is a story that has been repeated by many VCs this year — large growth rounds at sky-high valuations are not happening now.

There certainly were big rounds in Q3, including:

• In September, Palo Alto, California-based Mysten Labs, the developer of the Sui Layer 1 blockchain, closed a $300 million Series B at a more than $2 billion valuation led by FTX Ventures.
• That same month, Santa Monica, California-based sports metaverse company LootMogul secured a $200 million investment commitment from Gem. The startup is looking to build virtual sports cities based on real-world brands and professional athletes.
• In July, Palo Alto-based Aptos Labs locked up a $150 million Series A led by FTX Ventures and Jump Crypto at a $2 billion-plus valuation. The round came just four months after the company, which is creating its own Layer 1 system blockchain, closed a $200 million investment that minted it a unicorn. 

However, those deals were the exceptions more than the norm in the third quarter. In fact, the third quarter only saw five rounds of $100 million or more. That is the fewest since the fourth quarter of 2020, which saw only two. It is also well off the 26 such rounds announced in the first quarter of this year or the 21 witnessed in Q4 last year.

Big names go quiet

It is important to remember nearly all tech sectors have witnessed something similar with the number of big rounds falling drastically. Large growth firms including Tiger Global and Dragoneer have pulled back in the market, and so called tourist investors — those not extremely familiar with a certain technology — have fled to focus more on their portfolios and the sectors they know better.

That likely has affected Web3 funding more than some other areas, as much of the technology is relatively new and many investors are not nearly as acclimated to it as they are to other industries. 

Tiger appears to be a good case in point, as the huge crossover investor made 30 investments in Web3-related startups in the first two quarters of the year, but only four such deals in the third quarter.

Just this week, The Wall Street Journal reported Andreessen Horowitz’s flagship cryptocurrency fund lost 40% in value in the first half of the year, according to people familiar with the matter. According to Crunchbase data, the firm — which has been one of crypto’s and Web3’s biggest supporters — has slowed its investment cadence in crypto and blockchain in recent quarters. After making 53 deals in those sectors from Q4 2021 to Q2 of this year, the firm made only nine deals in the third quarter.

There also is the added aspect that investors see limited exit options in a still-maturing market like Web3. In times of uncertainty, investors like to see a direct path to liquidity if need be, and M&A activity has been sparse in the industry, especially in the last couple of quarters with only about a dozen deals announced, according to Crunchbase data.

Maybe some positives

While all those numbers do not paint a very promising picture, there are some positive trends if one looks closely.

September actually was the best month since June for Web3 funding, with VC-backed startups raising nearly $1.6 billion, per Crunchbase data. Investors have spoken optimistically of a small comeback in the fourth quarter as valuations have lowered and a new reality has set in.

Also, despite the slowdown in large growth rounds and funding in general, the Web3 sector still minted a handful of unicorns in the third quarter, including Mysten Labs, San Francisco-based continuous settlement protocol Zebec, Switzerland’s crypto products developer 21.co and London-based blockchain network 5ire.

With so much dry powder out there currently, there is definitely money to make more. However, during these uncertain economic times, investors seem wary of high valuations, so a big rebound seems unlikely for the fourth quarter.

Methodology

For Web3 funding numbers we analyze investments made into VC-backed startups in both cryptocurrency and blockchain.

Illustration: Dom Guzman

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Kim Kardashian agreeing to settle SEC charges for $1.26 million obviously was the biggest story in crypto and Web3 this week.

OK, it probably wasn’t, but it was a quiet week (and yes, she did pay up because she endorsed EthereumMax without disclosing that she was paid to do so. Don’t feel bad, she is worth $1.8 billion.).

However, since this is the first column of October, I thought maybe we’d take a look back at the biggest funding rounds around Web3 in September.

The sector saw 125 funding rounds (rounds that went to startups in the crypto, blockchain and Web3 space), with three of those topping $100 million, according to Crunchbase data.

The big three

Palo Alto, California-based Mysten Labs closed a $300 million Series B last month at a more than $2 billion valuation led by FTX Ventures. Layer 1 system startups build their own blockchain—meaning it will not sit on Ethereum or another network, but be its own decentralized network. Layer 1 players have seen big money and valuations recently, as fellow Palo Alto-based startup Aptos Labs closed a $150 million Series A led by FTX Ventures and Jump Crypto at a $2 billion valuation in July.

Santa Monica, California-based sports metaverse company LootMogul secured a $200 million investment commitment from Gem. The startup is looking to build virtual sports cities based on real-world brands and professional athletes. Sports are big in the real world; we’ll see how big they get in the metaverse.

The final nine-figure round last month went to Hong Kong-based blockchain gaming developer Animoca Brands. The company snagged $110 million in funding as it starts to prepare for a possible initial public offering. Temasek, GGV Capital and Boyu Capital were some of the big names taking part in the financing that held the company’s value at roughly $5.9 billion.

Those rounds pushed crypto and Web3 funding to its best month since June, with VC-backed startups raising nearly $1.6 billion in September, per Crunchbase data.

Illustration: Dom Guzman

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To get a sense how becoming an early unicorn correlates with future success, we took a sampling of companies that passed the $1 billion value mark less than two years after founding. We then categorized them based on their ability to sustain high valuations and market growth.

Below, we look at the cohort across three categories: fast faders, public market flops, and those for whom the verdict still awaits.

Fast Faders

First off, it’s obvious that many startups that were quick to join the unicorn herd also flamed out rather rapidly.

The poster child for this phenomenon is probably Clubhouse, the audio-based social networking platform that became a thing in early 2021 for the pandemic work-from-home crowd. As Clubhouse’s invite-only downloads soared, so did its cache among investors. The app, launched in 2020, landed a Series B in April 2021 at a reported $4 billion valuation. 

Things have largely gone downhill since. While Clubhouse is still around, it’s not a buzzy property anymore. The app ranks No. 67 in the U.S. for the social category on the Google Play Store, per AppBrain. Meanwhile, looking to narrow its focus, Clubhouse reportedly carried out layoffs in June. 

The instant grocery delivery services Gorillas and Jokr were also quick to soar and then falter. 

Berlin-based Gorillas, founded in 2020, raised nearly $1.3 billion in 2021 at a reported post-money valuation around $3 billion. More recently, the company’s trajectory has been marked by layoffs, exodus from multiple markets, and focusing on cutting cash burn.

Meanwhile, fast delivery provider Jokr, founded in 2021, raised $430 million last year and logged one of the swiftest paths to unicorn status of any startup. It slowed fast too. This summer, the company announced it was shuttering New York and Boston operations as it focuses on Latin America. 

Public markets won’t support these numbers

Sometimes, venture investors give companies much higher valuations than public markets will support.

This was the case for Bird, the e-scooter rental platform that soared to unicorn-hood in autumn 2017, just a few months after its launch. In the following years, its branded scooters became omnipresent on the streets of major cities.

Then, in May 2021, Bird announced it would go public through a SPAC merger at an expected initial valuation around $2.3 billion. It worked out badly. Bird plummeted immediately upon completing its merger in November. So far this year, the price has fallen further, with shares recently going for 36 cents each.

Desktop Metal, the 3D printing company that had an unusually rapid ascent to a billion-plus valuation, has also struggled on the public markets. While the stock was trending up for a few months following its NYSE debut in December 2020, it’s since sharply reversed. Today, Desktop Metal’s market cap is around $800 million. That’s not a pittance, but certainly well below its valuation as a private company.

Newer fast unicorn outlook seems iffy

Last year set the all-time record for startup investment, and many members of the fast unicorn club minted billion-plus valuations just a few months or quarters ago. Thus, it’s speculative to assess whether those values will hold up in the near or long term. 

So far, it looks iffy for several.

For one, some of those were pandemic-driven market trends which are showing signs of receding. For instance Hopin, a platform for managing virtual, hybrid and live events that was founded in 2019, pulled in $1 billion in 2020 and 2021, hitting a peak valuation of $7.75 billion. 

A year later, Hopin is cutting back. The London-headquartered company laid off 29% of its staff in July, after cutting 12% a few months earlier. The company has also been re-positioning its offering for broader appeal in a world where live events are back in vogue.

Thrasio, an aggregator of online brands selling on Amazon, was also quick to hit a high valuation. Founded in 2018, the Massachusetts company raised $2.2 billion in equity funding and $1.2 billion in debt by late 2021 to fuel its ultra-fast growth.

Then its fortunes turned. By May 2022, Thrasio was carrying out layoffs, and plans for a public offering at a potential $10 billion valuation have been thrust aside as U.S. e-commerce growth subsides.

Yuga Labs, known for its Bored Ape Yacht Club NFTs, is also facing a much-changed environment, but nonetheless seems to be holding up OK. The Miami-headquartered company, founded in 2021, raised $450 million in March at a reported $4 billion valuation. Shortly afterward, prices for its signature imagery hit their peak. But although they’ve fallen, even the cheapest was still recently selling for around $110,000.

Then there’s Pacaso, a two-year-old, San Francisco-headquartered service for buying stakes in second homes that hit unicorn status just five months after launch. Since then, U.S. real estate markets have been shifting fast in the face of sharply rising mortgage rates. However, it’s probably too early at present to conjecture about how Pacaco’s business model will fare. 

Two other quickly minted recent unicorns–Tel Aviv-based cybersecurity startup Wiz and Miami-headquartered crypto payments and NFT upstart MoonPay–fall in a similar bucket. It’ll take time to vet how they’re managing to grow in these leaner times.

Is there a lesson here?

Are there lessons to be learned from the early unicorn crowd? An obvious one is that generating buzz and high valuations at an early stage isn’t a reliable indicator of future success. Another is that when you’re betting on a trend, make sure it looks like a lasting one (and not, say, a pandemic-driven temporary adaptation).

Still, there is some truth to the notion that transformative companies and founders can be recognized early. When four-year-old Apple went public in 1980, for instance, it was already a profitable company with a hit product. Google, founded in 1998, took just a couple years to dominate the search engine space.

So, yeah, it’s probably realistic to expect some of these fast unicorns to soar to amazing heights. Many, however, will fall to Earth.

Illustration: Dom Guzman

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The follow-on investment was announced by Binance Labs in a blog post. It did not disclose the amount of the follow-on investment, but a Bloomberg report said the new money gives Aptos a valuation of more than $4 billion.

Binance Labs specifically noted Aptos’ use of the programming language Move to build its blockchain as part of the reason for the investing arm’s interest in the startup. Move is said to allow for faster transaction execution and a safer user experience.

“We believe that the technological competitiveness of the Aptos team could bring increased scalability to the blockchain infrastructure while also supporting novel use cases for Web3,” said Yi He, co-founder of Binance and head of Binance Labs, in the blog.

Big money

Aptos, founded by ex-Meta employees, is creating a Layer 1 system blockchain, meaning it will not sit on Ethereum or another network, but be its own decentralized network. The company is looking to build off of key elements of the Diem blockchain and its smart contract language, Meta’s Stablecoin project that was shuttered earlier this year.

The new round is just the latest raise by the Layer 1 blockchain Web3 company. It was just in mid-March when Aptos closed a $200 million investment from Tiger Global, Coinbase Ventures and FTX Ventures, and valued the company at more than $1 billion. Aptos then closed a $150 million Series A in July, also led by FTX Ventures, along with Jump Crypto. Binance Labs took part in the July round, which valued the company at more than $2 billion. 

Layer 1 blockchain startups continue to capture investors’ imagination—and money.

It was just last week when Palo Alto, California-based Mysten Labs closed a $300 million Series B at a more than $2 billion valuation. The new round was led by FTX Ventures. 

Illustration: Dom Guzman

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