- Crypto payment startup MoonPay raised $555 million in a funding round, valuing the company at $3.4 billion.
- CEO Ivan Soto-Wright and other executives were able to cash out $150 million of their own stock.
- However, rank-and-file employees were not given the promised equity options due to a blackout period for issuing new options.
- MoonPay's failure to issue options at a low strike price before talks with investors hurt its employees' potential upside.
- The company's business was also affected by the fading enthusiasm for buying crypto.
Cryptocurrencies, including Bitcoin and Ethereum, experienced a rise in value as investors anticipated the Federal Reserve's annual meeting and Bitcoin attempted to reach $30,000.
Crypto funding in August appeared promising with a $819 million investment, but without two large funding rounds, it would have actually shown a decline from July and a significant decline from the same time last year, reflecting a continuing slowdown in the industry.
Despite a decrease in venture capital investments in June, new crypto projects are still attracting funding, including Orbital's $6.4 million raise for expanding blockchain payment infrastructure, unshETH's $3.3 million seed round for decentralized finance solutions, ZTX's $13 million funding for Web3 infrastructure development, Stroom Network's $3.5 million raise for Bitcoin staking, and Fxhash's $5 million funding for its digital art platform.
Web3 venture capitalists have established a $20 million fund to invest in blockchain gaming and collectibles projects, as well as other Web3 initiatives.
Crypto firm Layer N has raised $5 million in a seed round co-led by Founders Fund and dao5, aiming to build a layer-2 blockchain on top of Ethereum to increase transaction speed and capacity.
Artificial intelligence and analytics firm Databricks has raised over $500 million in a Series I funding round, including strategic investor Nvidia, as it prepares for an anticipated IPO and expands its partnership with Nvidia to focus on generative AI. The fundraising round values Databricks at $43 billion and positions it as the eighth-most valuable private company globally. The company is closely monitoring the IPO market but will not be quick to go public, waiting for the macro environment to stabilize.
The crypto industry experienced significant capital outflows of $55 billion in August, leading to a liquidity crunch that allows isolated events to have a greater impact on prices and market movements, according to an analysis from Bitfinex.
Three Chinese firms, including AI software company Beijing Fourth Paradigm, are seeking to raise a total of $280 million through Hong Kong IPOs, with Fourth Paradigm aiming to raise up to $144 million.
Blockchain Capital has raised $580 million for two new funds, with $380 million allocated for early-stage companies and protocols, and $200 million for late-stage investments, indicating continued investor interest despite the subdued state of the digital asset market.
Deep-pocketed crypto investors have moved over $660 million worth of Bitcoin, Ethereum, and Chainlink as Bitcoin's price drops below $27,000.
