Crypto accelerator programs attract increasing number of web3 startups

The growing web3 investment activity and crypto accelerators are giving more web3 projects room to prosper

  • Published:
  • 01/04/2024 03:45 PM

Crypto seems to have entered a sustained bull market in 2024, with Bitcoin at a resistance level around $70,000 and altcoins seeing a relevant boom. Interest in the crypto space has renewed as well, especially after the crypto winter of 2022.

Web3 gaming is one of the sectors to have benefited from the current bullish outlook of the crypto market; investments in the space are on the rise. Meanwhile, as analysts are noting, a growing number of startups are joining startup accelerator programs.

Notably, startup accelerators are known to offer guidance, support, mentorship, and even funding to up and coming startups in exchange for equity. US-based Y Combinator is a renowned name in this regard, having mentored well-known crypto platforms like OpenSea and Coinbase- the first being primarily a NFT marketplace and the second a crypto exchange.

California-based venture capital firm Andreessen Horowitz (a16z) has recently publicised the 25 startups strong lineup for its crypto startup accelerator in spring 2024. The chosen projects include innovations across areas like decentralised food delivery, zero-knowledge passport authentication, and more.

Said companies are expected to go through a 10-week mentorship program with the a16z team in London. Notably, a16z provides $500,000 in exchange for a 7% equity stake in each selected startup.

Going back to the magnified interest in crypto graming, Helika, a company working with web3 gaming infrastructure, has plans to launch a web3 gaming crypto accelerator known as Helika Accelerate. Subsequently, the firm has unveiled a collaboration with Spartan Capital, Sfermion, Pantera Capital, and other venture capitalists to offer up to $50 million to the startups participating in this program.

Sam Lehman from Symbolic Capital made a recent X post about strong crypto accelerators playing an integral role in fostering a community among project founders in the web3 space. However, he added, “Some accelerators are using the early stage at which they invest plus their proposed ‘value-add’ to come in and take extremely big positions in companies immediately. Founders should definitely think twice about whether the terms they’d accept from an accelerator are worth what they’d receive in return.”

As investment activity grows in web3 thanks to crypto accelerators, overall it’s an interesting space to be in, to say the least.

Shashank is the founder of yMedia. He ventured into crypto in 2013 and is an ETH maximalist.

Twitter: @bhardwajshash