The Web3 start-up landscape is rapidly changing, driven by shifting investor sentiments, increased regulatory scrutiny, and the volatile crypto market.
Despite these challenges, a select group of start-ups is experiencing remarkable growth. The Web3 sector faced a tough start to the year, with a 76% dip in VC funding during the second quarter of 2023 compared to the previous year.
However, this adversity has spurred innovation and funding strategies among start-ups, showcasing their adaptability.
From decentralized finance to non-fungible tokens, here are the 15 fastest-growing Web3 start-ups making significant waves in 2023/2024.
Search growth status guide:
- Moon – general upward trend in search growth
- When Moon? – trend remains mostly flat or sideways
- Rekt – search growth has already peaked and is on the decline
1. XTERIO
5-year growth: +1,000%
Search growth status: Rekt
Year founded: 2023
Location: Switzerland
Valuation: $300 million (Source: The Block, Crunchbase)
Funding: In August 2022, Xterio raised $40 million in Series A. This was followed by Binance Labs adding $15 million in July 2023, totaling $55 million across two rounds. (Source: Crunchbase, CoinDesk).
What they do: Xterio is working on developing and publishing free-to-play-and-own games. Founded by game industry veterans, Xterio operates globally, creating gaming worlds with digital ownership. Their cross-platform portfolio focuses on multiplayer games. With a strong global team, they’re paving the way for high-quality mobile and Web3 games.
2. LOOKSRARE
5-year growth: +9,900%
Search growth status: Rekt
Year founded: 2021
Location: USA
Valuation: Unknown
Funding: LooksRare secured $1.8 million, with the latest Seed VC round on January 13, 2022, backed by ICONIUM and LifeBoat Ventures, among others(Source: Crunchbase, Tracxn).
What they do: LooksRare is a strong player in the Non-Fungible Token (NFT) marketplace, providing a platform to trade digital assets. What sets LooksRare apart is its reward system; users are rewarded with the platform’s native tokens (LOOKS) for every transaction they make.
According to data from DappRadar, LooksRare has attracted significant user traffic, with over $1.3 billion in rewards earned by users to date. Their native cryptocurrency, LOOKS, has also seen substantial trading volume, further indicating the platform’s growing popularity.
3. EDVERSE
5-year growth: +850%
Search growth status: Exploding
Year founded: 2022
Location: India
Valuation: Unknown
Funding: Edverse raised $700,000 in a Seed round on May 6, 2022, and later in a Biz Plan Competition on October 15. Notable investors included blufolioAG, Crypto Oasis Sentio, and Vulcan Forged. (Source: Crunchbase, Tracxn).
What they do: Edverse offers an educational platform allowing students to learn at their own pace in a virtual environment. The platform covers various subjects, from science to arts, and offers learning paths for each student. Edverse’s unique approach to education has gained popularity, with a rapidly growing user base across several countries.
4. ZENGO WALLET
5-year growth: +7,000%
Search growth status: Rekt
Year founded: 2018
Location: Israel
Valuation: Unknown
Funding: ZenGo raised $20 million in a Series A on April 27, 2021, led by Insight Partners. They’re now seeking $10 million more, keeping a $100 million valuation. (Source: Crunchbase, The Block).
What they do: ZenGo offers the world’s first keyless crypto wallet. The wallet is powered by Multi-Party Computation (MPC), removing the need for a private key and making it always recoverable and secure.
ZenGo started a new paid service named ZenGo Pro with extra safety features. They also now support Tezos and are looking to add more options. ZenGo’s safety design was checked by CertiK’s SkyFall team.
5. RARIBLE INC.
5-year growth: +800%
Search growth status: Rekt
Year founded: Not publicly disclosed
Location: USA
Valuation: Unknown
Funding: Rarible Inc. has raised $15.95 Million over three rounds. Their latest funding round was a Series A for $14.2 Million on June 23, 2021, led by Venrock Capital and CoinFund (Source: Crunchbase, Tracxn).
What they do: Rarible is a significant player in the Non-Fungible Token (NFT) marketplace, offering a platform where users can create, sell, and collect digital items. The platform is community-centric, focusing on the best possible user experience.
They have a free, open tool for NFTs that everyone can use. Rarible has also developed an aggregator app that allows users to browse any NFTs available on the blockchain.
6. ZYBER 365
5-year growth: +2,100%
Search growth status: Rekt
Year founded: 2023
Location: United Kingdom
Valuation: $1.2 billion
Funding: Zyber 365 has raised $100 Million in their latest round, Series A. The funding round was led by SRAM & MRAM. (Source: Business Standard)
What they do: Zyber 365 is a Web3 and AI-based operating system that combines the power of cybersecurity and quantum proofing to create a sustainable and affordable solution. Founded by Pearl Kapur and ethical hacker Sunny Vaghela, Zyber 365 offers a decentralized, cyber-secured operating system.
Despite being a recent startup, it’s already disrupting the industry with its on-chain security solution, setting a new standard for protection and peace of mind. Although Zyber 365 currently has no products to offer, it plans to build a suite of products in the next three years.
7. COVALENT
5-year growth: +70%
Search growth status: When Moon?
Year founded: 2017
Location: Canada
Valuation: Unknown
Funding: Covalent has raised $5.1 million over two funding rounds. The latest round was a Secondary Market round on February 3, 2023. Before this, the company raised $2 million in a Series A round held on March 24, 2021. (Source: Crunchbase, Tracxn)
What they do: Covalent is a Web3 startup that offers a unified API for fast, scalable historical blockchain data across 150+ chains. Initially, they addressed the often-neglected read-scalability problem.
The company’s CQT Network provides decentralized access to Web3 data, making it easier for developers to build on the blockchain. Covalent also offers a solution called ‘The Refiner’, transforming Web3’s data infrastructure by providing access to granular blockchain data. In addition to its current offerings, Covalent is actively hiring and running competitions, indicating a plan for further expansion.
8. STORMX
5-year growth: +450%
Search growth status: Rekt
Year founded: 2015
Location: USA
Valuation: Unknown
Funding: StormX has raised $47.7 million in funding over multiple rounds. The company raised $9 million in a Series A funding round on July 27, 2021, led by Optimista Capital and other investors. (Source: Crunchbase)
What they do: StormX is a unique cryptocurrency-based platform allowing users to earn crypto rewards. With over 32 million downloads globally, it has paid over $2.8 million in crypto cashback rewards.
The platform enables users to earn crypto while shopping at their favorite stores, offering up to 87.5% Crypto Cashback. Despite the current price of StormX being significantly below its all-time high, the company continues to innovate, including recent product releases and feature enhancements.
9. OPENSEA
5-year growth: +300%
Search growth status: Rekt
Year founded: 2017
Location: USA
Valuation: $13.3 billion (Source: Techcrunch)
Funding: OpenSea secured $300 million in a Series C on January 4, 2022, led by Paradigm and Coatue, valuing the company at $13.3 billion. They’ve raised $427 million across six rounds. (Source: Crunchbase, Coindesk).
What they do: OpenSea is the world’s first and largest web3 marketplace for NFTs (Non-Fungible Tokens) and crypto collectibles. The platform allows users to browse, create, buy, sell, and auction NFTs. OpenSea has a mobile app, making it easier for users to track their NFT collection and discover new items.
Founded by Devin Finzer and Alex Atallah in 2017 and based in New York City, OpenSea has a clear vision. Specifically, they aspire to construct the world’s most trustworthy and inclusive peer-to-peer NFT marketplace. By doing so, they intend to make the processes of minting, purchasing, and selling NFTs seamless.
10. DAPPER LABS
5-year growth: +60%
Search growth status: When moon?
Year founded: 2018
Location: Canada
Valuation: $7.6 billion (Source: Sportico)
Funding: Dapper Labs secured $250 million in a Series D on September 21, 2021, led by Coatue, valuing it at $7.6 billion. They’ve raised $886 million over nine rounds. (Source: Crunchbase, Tracxn, Coindesk).
What they do: Dapper Labs is a blockchain technology company known for creating CryptoKitties and NBA Top Shot. They use blockchain technology to bring new forms of digital engagement and entertainment.
The company aims to make blockchain technology accessible and enjoyable for everyday people. However, Dapper Labs recently faced some challenges, having had to lay off 51 employees amid a contraction in the NFT market. Despite these setbacks, Dapper Labs continues innovating within the crypto and NFT space, creating engaging, blockchain-based experiences.
11. FORTE
5-year growth: +15%
Search growth status: When Moon?
Year founded: 2019
Location: USA
Valuation: Unknown
Funding: Forte has raised $910 million over three funding rounds. The company’s latest funding round was a Series B, which took place on November 12, 2021, where they secured $725 million. (Source: Crunchbase, CBInsights, BusinessWire).
What they do: Forte is a San Francisco-based company that aims to accelerate the adoption of blockchain technology in the gaming industry. They provide a platform for game developers to integrate blockchain into their games, enabling new economic and creative opportunities.
Moreover, Forte’s platform is distinctively free, open, and compatible with all game platforms. Founded by Kevin Chou, notably the co-founder and ex-CEO of Kabam, Forte holds a conviction. Specifically, they ardently believe that blockchain carries the potential to pave the way for more equitable business frameworks for game creators.
12. SORARE
5-year growth: +20,000%
Search growth status: Moon
Year founded: 2018
Location: France
Valuation: $4.3 billion (Source: FastCompany)
Funding: Sorare secured $680 million in a Series B on Sep 21, 2021, led by SoftBank, valuing the company at $4.3 billion. They’ve raised $739 million across four rounds. (Source: Crunchbase).
What they do: Sorare is a fantasy sports game that uses blockchain technology to allow users to collect and compete with ownable digital player cards. Developed by Nicolas Julia and Adrien Montfort, Sorare currently includes soccer, NBA, and MLB.
Users can compose their lineups, track their teams, claim rewards, and more – all in the Sorare app. The platform has attracted a large following on social media, with over 168K followers on Instagram. SorareData also provides exclusive data analysis on cards, auctions, and players available on Sorare.
13. MOONPAY
5-year growth: +4,000%
Search growth status: Moon
Year founded: 2019
Location: USA
Valuation: $3.4 billion (Source: CNBC)
Funding: MoonPay secured $87 million from over 60 celebrities in their Series A in November 2021. With eight rounds totaling $555 million by Sep 26, 2023, the company’s valuation reached $3.4 billion. (Source: Crunchbase, CBInsights, CoinDesk).
What they do: MoonPay is a financial technology company that provides payment solutions for cryptocurrency. It offers a fast, simple, and secure way to buy and sell cryptocurrencies using credit cards, bank transfers, or Apple Pay.
In addition to its primary services, MoonPay recently launched an investment arm focusing on early-stage startups in web3, gaming, and fintech. However, users should know the trading and transaction fees when using MoonPay.
14. MESSARI
5-year growth: +120%
Search growth status: When Moon?
Year founded: 2018
Location: USA
Valuation: Unknown
Funding: Messari secured $35 million in a Series B on September 21, 2022, led by Brevan Howard Digital. They’ve raised $61.25 million across six rounds. (Source: Crunchbase, Tracxn).
What they do: Messari is a leading provider of crypto market intelligence products that help professionals navigate the Web3 landscape. Moreover, they facilitate a streamlined diligence process for asset listing and enable teams to monitor real-time developments in the digital asset ecosystem.
Despite facing a restructuring effort earlier this year, which resulted in a 15% reduction in its workforce, Messari continues to be a leader in cryptocurrency, Bitcoin, Ethereum, XRP, blockchain, DeFi, digital finance, and Web 3.0 news with analysis, video, and live price updates.
15. PINATA CLOUD
5-year growth: +120%
Search growth status: When Moon?
Year founded: 2018
Location: USA
Valuation: Unknown
Funding: Pinata Cloud raised $21.8 million across three rounds. On March 3, 2023, they secured $20 million in a Series A led by Bessemer, with participants like Galaxy Digital and Coinbase Ventures. (Source: Crunchbase).
What they do: Pinata is a tech startup in the Web3 space, offering an IPFS API & IPFS Gateway. Moreover, their platform streamlines the process of uploading content to the InterPlanetary File System (IPFS), a network crafted for distributed file storage and sharing.
Equipped with developer tools and specialized gateways, Pinata ensures users can quickly access their uploaded content. Consequently, as a pivotal component of the decentralized web, it empowers developers and businesses to craft more transparent and robust applications.
Conclusion
The burgeoning Web3 landscape is the cradle for a myriad of innovative start-ups, revolutionizing the digital world.
Among them, 15 stand out, demonstrating explosive growth and paving the way for a decentralized future. The list could go on, but these trailblazing companies merit recognition for their resilience and success in the ever-evolving world of cryptocurrency and blockchain.
Alchemy, Binance, Ripple, Crypto.com, and Coinbase Global have demonstrated numerous possibilities in the realm of decentralized internet access and development.
The current Web3 trends and understand their significance in the ecosystem and ways you can benefit from them. Some of these trends include Account Abstraction, NFT and Smart Contract Composability, Utility NFTs, In-Game Assets for Gaming, and Stealth Addresses.
Binance
Crypto.com
Opensea
Chainalysis
Ripple
Braintrust
Okcoin
Consensys
Suchet Salvesen
Suchet is a Norwegian economist, entrepreneur, and investor, serving as the CFO and COO of Brainfund. With over a decade of experience in global expansion, venture capital, and emerging technologies, he earned his MBA from the NMBU School of Business & Economics. He held dual bachelor's degrees from the University of South-Eastern Norway. His career spans roles at NextToMe, Get, and Conax before joining Everipedia, now Brainfund, in 2017.
