October Sees $860M VC Boost for Crypto Startups, Led by Infrastructure and Gaming Sectors

• Crypto startups saw a 30% VC funding increase in October, driven by infrastructure and gaming investments.
• Blockchain gaming funding surged 75%, with Azra Games securing $42.7M from top venture capital firms.
• DeFi sector funding rebounded to $98M in October, signaling renewed investor interest in decentralized finance.

October saw VC funding for crypto startups stand at $860 million, which is 30% higher than that of the previous month. This jump represents the most substantial monthly total since April, when investments peaked at $954 million, according to DefiLlama. 

This resurgence reflects growing interest across several blockchain sectors, including blockchain gaming, infrastructure, and decentralized finance (DeFi).

Blockchain Gaming Investments Rise

The blockchain gaming industry also recorded increased funding with over $110 million invested in the sector. Compared to September, this is a 75 % rise, which makes October the third consecutive month that has recorded higher investment. 

Azra Games, a mobile gaming studio, attracted the largest share, securing $42.7 million from prominent VC firms like Pantera Capital, a16z Crypto, and NFX. This funding underscores the rising confidence in blockchain-based gaming ventures.

Infrastructure Solutions Dominate VC Funding

Infrastructure solutions took the lead, capturing $609 million in venture capital, up by 33% from September. The sector’s largest investment went to Blockstream, a Bitcoin-focused infrastructure provider, which raised $210 million from Fulgur Ventures. 

Yellow Card, another infrastructure startup focused on simplifying crypto access for African users, followed with a $33 million Series C round. Glow Labs, a company leveraging blockchain to support solar energy adoption through community platforms, secured $30 million, marking it as the third largest infrastructure-related funding round.

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DeFi Funding Shows Signs of Recovery

After facing a 55% funding decline from August to September, the DeFi sector rebounded with $98 million in October. Solv, a platform offering Bitcoin staking services, led the way, raising $11 million from investors like Laser Digital, Blockchain Capital, and OKX Ventures. 

Another notable player, Variational, raised $10.3 million in seed funding, backed by Bain Capital Crypto and Peak XV Partners, to develop its decentralized derivatives platform.

This robust wave of investments across gaming, infrastructure, and DeFi highlights a renewed confidence in crypto ventures. Venture capitalists are increasingly placing bets on diverse blockchain innovations, suggesting a strong belief in the sector’s potential for growth.