## VC Funding for Crypto Startups Hits $634 Million in August

Venture capital (VC) funds have poured **$634 million** into crypto startups in August, marking a **15% increase** from July, according to data from DefiLlama.

![VC funding for crypto startups](https://cryptoslate.com/wp-content/uploads/2024/09/vc-funds-768x403.jpg)

### Infrastructure Dominates Funding
Projects focused on **blockchain infrastructure** garnered nearly **$460 million**, accounting for **72%** of the total funding. Notable funding rounds include:
- **PIP Labs** raised **$80 million** for its blockchain network, **Story**, led by **a16z** with participation from Polychain Capital and digital artist **Cozomo de’ Medici**.
- **Bridge**, a stablecoin issuance platform, secured **$58 million** in a round led by **Sequoia Capital**, Ribbit Capital, and Index Ventures.

### DeFi Sector Growth
The **DeFi** sector attracted nearly **$129 million**, a **50% increase** from July. Key highlights include:
- **Morpho Labs** raised **$50 million**, with investors like Ribbit Capital and **Coinbase Ventures**.
- **Duelnow**, a decentralized sports-betting platform, raised **$11 million**.

### Rise of Blockchain Gaming
The **web3 gaming ecosystem** saw funding more than double to **$43 million** in August. Highlights include:
- **Gameplay Galaxy**, known for the biking game **Trial Xtreme**, raised **$11 million**.
- **Moonveil**, a gamer-focused ecosystem, secured **$9 million** with investments from HashKey Capital and **Animoca Ventures**.

This surge in funding underscores the growing interest and confidence in the **crypto** and **blockchain** sectors, particularly in infrastructure, DeFi, and gaming. 

![Cover art/illustration via CryptoSlate](https://cryptoslate.com/wp-content/uploads/2024/09/vc-funds.jpg)

Infrastructure still dominates in amount of funding, but DeFi and blockchain gaming witness growth in VC interest.

August Sees a Surge in VC Funding for Crypto Startups: $634 Million Raised!

A year-old **crackdown** on **Airbnb** in New York City has given rise to a booming underground market for apartment rentals, with innovative startups emerging to capitalize on the situation.  

### The Impact of Local Law 18  
Last fall, the **New York City Council** enacted **Local Law 18**, imposing stringent regulations on home-sharing, which led to Airbnb removing thousands of listings from its platform. Hosts are now subject to complicated registration processes and must be present during guest stays unless rentals exceed 30 days.  

### The Rise of Underground Groups  
In response, **private invite-only groups** have proliferated on platforms like **Facebook**, **Instagram**, **WhatsApp**, and **Craigslist**, featuring names such as “Friendbnb” and “Gypsy Housing NYC.” These groups often charge fees through apps like **Venmo** or **PayPal**. One group, “NYC Short Term Sublets,” has gained over **17,300 members** and posted **630 listings** in just one month.  

### Startups on the Scene  
Among the startups thriving in this environment is **Ohana**, based in a loft at the renovated **Domino Sugar Factory** in Brooklyn. Founded by **Jacob Halbert** and **Ezra Gershanok**, Ohana focuses on rentals longer than 30 days and has aggressively recruited hosts, amassing over **1,200** from Airbnb alone. They recently raised **$3 million** from prominent investors, including former Airbnb executives.  

![Ohana's Office](https://nypost.com/wp-content/uploads/sites/2/2024/10/ohanas-employees-offices-williamsburg-former-91137738.jpg?w=1024)  
*Ohana’s offices are in the former Domino Sugar factory in Williamsburg.*  

### Competition and Controversy  
Ohana's tactics have drawn criticism, with some groups accusing them of infiltrating and disrupting community listings. For instance, **Ricky Berrin**, founder of the **NYC Home Sharing** group, has publicly called out Ohana for their aggressive recruitment strategies.  

### New Entrants and Market Growth  
Another startup, **hostU**, launched by **Bella Le Sage**, focuses on connecting students to housing and has recently expanded into NYC. **Furnished Finder**, a Texas-based company, has also seen significant growth in demand since the new regulations, confirming that many former Airbnb hosts are now listing on their platform.  

![Bella Le Sage, Founder of hostU](https://nypost.com/wp-content/uploads/sites/2/2024/09/bella-le-sage-founder-hostu-89338974.jpg?w=731)  
*Bella Le Sage is a student at Northwestern University and launched a home-sharing site for students, hostU last year.*



A year-old clampdown on Airbnb in New York City has created an exploding underground market for apartment rentals — and a handful of scrappy startups...

How NYC's Airbnb Crackdown Ignited a Thriving Underground Rental Market

### Anyformat's Ambitious Funding Round

**Anyformat**, a pioneering startup based in Spain, has successfully raised **€520k** in a pre-seed financing round aimed at revolutionizing the collaboration between **humans and artificial intelligence**. This funding, led by **4Founders Capital** and **Abac Nest Ventures**, will accelerate the development of their **generative AI platform**, which is set to transform how businesses manage and analyze **unstructured data**.

### A Game Changer in Data Automation

With this new capital, **Anyformat** is positioning itself as a **key player** in automating the extraction and analysis of complex data. Their platform empowers users—regardless of technical expertise—to **convert large volumes of unstructured information** into actionable insights, which is essential for organizations striving for **data-driven decision-making**.

### The Growing AI Market in Spain

According to the **Data Cube report**, the **artificial intelligence market** in Spain is projected to reach **$26.56 billion by 2032**, growing at a rate of **27.4% annually**. This booming market, coupled with the increasing generation of unstructured data, underscores the strategic importance of **Anyformat** for companies seeking **operational agility**.

### Vision of Hybrid Intelligence

Juan Huguet, CEO of **Anyformat**, emphasizes their mission: *“Our mission is clear: to enable organizations to adopt hybrid intelligence by allowing AI to do the heavy lifting of extracting and structuring data.”* This innovative approach allows companies to access vital information quickly and efficiently.

### Simplifying Data Management

The **Anyformat** platform automates the extraction of information from documents, presentations, and even voice recordings, significantly reducing the manual effort previously required. **Alejandro Fernández**, COO, states: *“Many companies are held back by the difficulty of managing unstructured data. With our solution, we make that information immediately available to teams.”*

### Focus on Usability and Security

Designed for **scalability**, the platform ensures simple integration with existing systems. **Diego Pérez**, CTO, highlights: *“Our priority is to optimize workflows without compromising data security or privacy.”* Trust and responsible handling of information are core to their operations.

### Investors Recognize Disruptive Potential

Investors see the disruptive potential of **Anyformat**. Joan Pina from **Abac Nest Ventures** remarked: *“We believe in the vision of its founders and the impact that its technology can have on the industry.”* Companies utilizing **Anyformat** are enhancing their competitiveness by seamlessly integrating AI into their processes.

### Future Expansion Plans

With the new funding, **Anyformat** is set to expand its team and operations, focusing on strengthening its presence in **Spain** while exploring **international opportunities**. Juan Huguet concludes: *“We are committed to transforming unstructured information into a competitive advantage.”*

Anyformat, a Spanish startup betting on a new era of collaboration between people and artificial intelligence, has announced the raising of €520k in a

Unlocking Insights: Anyformat Raises €520k to Transform Unstructured Data Management

### Transforming the Lending Landscape

In recent years, **fintech startups** have been at the forefront of innovation, and one such startup has made significant strides in the Southeast Asian (SEA) lending market. By leveraging technology, this startup has successfully **reduced processing times for lenders by an impressive 70%**.

### How They Did It

The startup employs advanced algorithms and data analytics to streamline the **loan approval process**. By automating various steps that traditionally took days or even weeks, they have enabled lenders to respond to loan applications almost instantaneously.

### Impact on Lenders

This transformation not only enhances customer satisfaction but also allows lenders to **increase their operational efficiency**. With faster processing times, lenders can manage a higher volume of applications, ultimately leading to greater profitability.

### The Future of Fintech in SEA

As Southeast Asia continues to embrace digital solutions, this startup exemplifies how technology can disrupt traditional banking practices. The implications of their success could pave the way for more innovations in the region’s financial landscape.

Tech in Asia (YC W15) is a media, events, and jobs platform for Asia's tech communities.

Revolutionizing Lending: This Startup Cuts Processing Time by 70% for SEA Lenders

Sweden is among the best countries for a new **AI company**, boasting an impressive **revenue growth of 1,127%** for its most successful tech startups.

## The Global AI Market is Projected to Speed Up
The global market for **generative AI** is predicted to grow by **30-40%** each year, making it a booming sector. In 2023, it was valued at over **€130bn**. According to Stanford University's latest AI report, the majority of private investment, totaling **€62.5bn**, occurred in the **US**, followed by **China** with **€7.3bn**. The **EU** and **UK** together attracted **€9bn** in investments. Last year, the number of newly founded AI companies rose globally by more than **40%**.

## The Hottest Locations to Create an AI Company in Europe
A recent report by **AIPRM** ranks the best countries for establishing an AI startup based on several factors, including the number of newly funded AI companies and total private investment. While the **US** takes the lead, **Sweden** ranks third globally, with **Singapore** in second place. Other notable rankings include:
- **Switzerland** (4th) - Benefitting from a strong business environment.
- **Germany** (6th) - Despite being Europe's strongest economy, it has a less favorable business climate.
- **Spain** - Rated highly for its business environment, surpassing both Germany and France.
- **France** (9th) - Home to the highest number of newly funded AI companies in the EU, with a total private AI investment of **$10.4bn**.

Christoph C. Cemper, founder of AIPRM, notes that “**Starting up in AI is becoming increasingly competitive** as the industry grows rapidly.”

## What Europe Can Gain
Generative AI could potentially add **$575.1bn (€521 billion)** to the **European economy**, equivalent to about one-tenth of Germany's GDP. To enhance competitiveness, Europe must adopt AI technologies more broadly. Currently, Europe leads in only one of the eight segments related to AI, specifically **AI semiconductor equipment**.

To bolster investments, the **European Commission** launched an **AI innovation package** in January 2024 aimed at supporting AI startups and SMEs. The report emphasizes the need for increased investments in AI applications for healthcare and defense, as well as programs focused on re-skilling the workforce.

A critical element for success will be achieving competitive energy prices, as AI is projected to significantly increase data center power demand, which could reach **5%** of total electricity consumption by the end of the decade. Furthermore, generative AI could enhance Europe's annual productivity growth rate by up to **3%** through 2030, as per McKinsey's research.

Sweden is among the best countries for a new AI company. It's most successful tech start-ups have seen an impressive revenue growth of 1,127%.

Discover the Top European Countries for Launching Your AI Startup!

### Overview
A **new report** highlights the challenges and opportunities for **rural workers** striving to thrive in their hometowns. The **Generating Rural Opportunities in the Workforce** report, a collaboration between the **University of Phoenix Career Institute** and the **Center on Rural Innovation**, reveals several critical insights:

### Employment Limitations
- **Rural workers** are more than **twice as likely** to feel limited in their employment opportunities, with **60%** believing that pursuing a career is out of reach.
- Nearly **70%** would consider leaving their community for better job prospects, compared to just over half in urban areas.

### The Technology Gap
- The **knowledge economy** has disproportionately affected rural areas due to a lack of **technological infrastructure**. While **73%** of rural residents now have **high-speed internet**, this still lags behind urban (77%) and suburban (86%) counterparts.
- Amanda Weinstein, director of research at the Center on Rural Innovation, emphasizes the need for better **internet access** and **workforce development**.

### Workforce Development Needs
- With the rise of **remote work**, rural workforce development must focus on **national and global opportunities** rather than just local labor needs.
- **Raghu Krishnaiah**, COO of University of Phoenix, warns of an impending **employment cliff** due to the retirement of the baby boomer generation. Investing in the rural workforce can benefit both workers and employers.

### Optimism and Opportunities
- **Rural workers** remain optimistic about their career futures (68% vs. 71% for non-rural workers) but feel uncertain about staying in their hometowns.
- There is significant interest in **entrepreneurship** among rural residents, but a gap exists between their aspirations and available tools and opportunities.

### Solutions and Support
- Continued investment in **broadband infrastructure** and building **professional social capital** are essential for supporting rural workers.
- About **50%** of rural workers feel they need to develop skills for networking, with **40%** lacking the necessary resources. Establishing mentorship programs and local networking events can bridge this gap.
- Employers and institutions are encouraged to help rural workers find the right pathways for **skills development** and foster **entrepreneurship**.

### Visuals
![Main Street in Rockton, Illinois](https://wlos.com/resources/media2/16x9/3000/986/0x157/90/d5e633e2-833a-455d-87e5-c41e252c9f4a-GettyImages1214585514.jpg)
![Broadband installation in rural Washington](https://wlos.com/resources/media/4f6f3baf-f7e7-4eb7-9a5c-8df413438b39-medium16x9_2130985ac3ba485f9f37d1dfd4a8120eAP21093092739631.jpg)

A new report looks at the barriers and opportunities for rural workers to stay and thrive in their hometowns.

Unlocking Potential: How Rural Workers Can Thrive with Better Tech and Training

Welcome to **Startups Weekly**, your essential recap of this week's startup landscape. Subscribe for our weekly insights delivered straight to your inbox every Friday!

### Hot Topics in Startup Funding

This week, we spotlighted **AI funding** news alongside some cautionary notes regarding potential market overheating. Fortunately, we also discovered some intriguing startups making waves in their respective fields.

![Whatnot Seller](https://techcrunch.com/wp-content/uploads/2024/10/WhatNot-seller.jpg?w=680)
*Image Credits: Whatnot*

### Major Headlines

**BillionAI**: OpenAI has successfully **raised $6.6 billion**, achieving a formidable **$157 billion valuation**. In addition, they secured a **$4 billion revolving credit line** and launched a new interface to enhance their offerings. Interestingly, reports suggest OpenAI may have advised investors against supporting competitors like **Anthropic** and **xAI**. In the meantime, Anthropic has made headlines by hiring OpenAI co-founder **Durk Kingma**.

**Attack of the Clones**: Y Combinator found itself in hot water for backing **PearAI**, an AI coding startup accused of cloning another open source project without proper credit.

**Livestreamed Shopping**: The platform **Whatnot** reported a remarkable **$2 billion in annual GMV**, indicating a resurgence in live commerce in the U.S.

### Noteworthy Fundraises

![Series Entertainment CEO Pany Haritatos](https://techcrunch.com/wp-content/uploads/2024/09/Series-Entertainment-CEO-Pany-Haritatos.jpg?w=680)
*Image Credits: Series Entertainment*

Some startups are making headlines with their funding rounds:

- **Poolside**, an AI coding startup, raised **$500 million** to enhance its operations with **10,000 Nvidia GPUs**.
- **Submer**, a Barcelona-based startup specializing in immersion cooling, secured **$55.5 million** to expand its customer base.
- **11x.ai**, which develops AI sales bots, raised approximately **$50 million** led by **Andreessen Horowitz**.
- **Eon**, a cloud backup startup, emerged from stealth with **$127 million** funding, achieving a **$750 million** valuation.
- **Series**, a generative AI game-development platform, raised **$28 million** from notable investors like **Netflix** and **Dell**.

### VC and Fund News

![Startups and Venture Capital](https://techcrunch.com/wp-content/uploads/2024/10/GettyImages-1178654963.jpg?w=680)
*Image Credits: Kimberly White / Stringer / Getty Images*

In venture capital news:
- **CRV** returned **$275 million** to investors due to concerns about the overvaluation of mature startups.
- **Ali Rowghani**, former Y Combinator managing director, is launching **Maxq**, targeting **$250 million** for its initial fund.
- **Index Ventures** is expanding its investment team in New York, looking to recruit several new members.

### Insights from Kevin Ryan

In a discussion with TechCrunch, investor and entrepreneur **Kevin Ryan** emphasized the importance of timing when considering selling a startup, suggesting that many founders should contemplate this option more seriously. 

Stay tuned for more updates from the startup world next week!

Welcome to Startups Weekly — your weekly recap of everything you can’t miss from the world of startups. Want it in your inbox every Friday? Sign up here.

OpenAI's Massive Funding: What It Means for Startups in 2024

## The Landscape of China's EV Market

Despite facing **funding gaps** and **intense price wars**, China's electric vehicle (EV) startups may have found a **lifeline** thanks to **Beijing's economic stimulus** aimed at reviving investor interest.

### Challenges for Startups

While market leaders like **BYD** and **Geely** are well-established, innovative startups aiming to be **China’s answer to Tesla** are at a **critical juncture**. Their primary struggle is the **lack of cash**. Competing in the **cutthroat** auto market is not only expensive but also fraught with **fickle consumer preferences** and **high R&D costs**. These factors create **major obstacles** to achieving sustainable profits.

### Government Support and Innovation

Over the past decade, a combination of **government support**, rapid **technological innovation**, and **entrepreneurial drive** has allowed China to significantly scale up EV production. The availability of **market-based financing** has been a pivotal driver of the EV boom, as Beijing has worked towards reducing reliance on internal combustion engine vehicles.

### Attracting Investment

To attract consumers, the government has implemented **incentives** that subsidize electric vehicle purchases and streamline registration processes. This has made the EV sector an attractive investment opportunity, with startups raising **billions** from eager investors looking for the next **unicorn** in the environmentally friendly industry.

![China's EV Industry](https://cdn.i-scmp.com/sites/default/files/styles/wide_landscape/public/d8/video/thumbnail/2024/03/08/Thu_web-copy.jpg?itok=h8iCaCIn)

*‘Overtaking on a bend’: how China’s EV industry charged ahead to dominate the global market* 

### Conclusion

In light of these developments, China's EV startups are poised for potential recovery and growth, given the right circumstances and continued support from both the government and investors.

Despite funding gaps and price wars, EV newcomers may have been thrown a lifeline by Beijing’s economic stimulus, if it reignites investor interest.

August Sees a Surge in VC Funding for Crypto Startups: $634 Million Raised!

Summary:

VC Funding for Crypto Startups Hits $634 Million in August

Infrastructure Dominates Funding

DeFi Sector Growth

Rise of Blockchain Gaming

Comments

Other Latest News

How NYC's Airbnb Crackdown Ignited a Thriving Underground Rental Market

Unlocking Insights: Anyformat Raises €520k to Transform Unstructured Data Management

Revolutionizing Lending: This Startup Cuts Processing Time by 70% for SEA Lenders

Discover the Top European Countries for Launching Your AI Startup!

Unlocking Potential: How Rural Workers Can Thrive with Better Tech and Training

OpenAI's Massive Funding: What It Means for Startups in 2024

China's EV Startups Get a Breath of Fresh Air Amid Economic Stimulus

Other Latest News

How NYC's Airbnb Crackdown Ignited a Thriving Underground Rental Market

Unlocking Insights: Anyformat Raises €520k to Transform Unstructured Data Management

Revolutionizing Lending: This Startup Cuts Processing Time by 70% for SEA Lenders

Discover the Top European Countries for Launching Your AI Startup!

Unlocking Potential: How Rural Workers Can Thrive with Better Tech and Training

OpenAI's Massive Funding: What It Means for Startups in 2024

China's EV Startups Get a Breath of Fresh Air Amid Economic Stimulus