Accelerator programs have become popular among Web3 startups as the cryptocurrency market enters a new bullish phase and investors seek opportunities to get involved. These programs offer mentorship and guidance to startups in exchange for early equity. One renowned accelerator program is Y Combinator, based in the United States, which has supported several successful crypto firms like Coinbase and OpenSea.
On March 26, Andreessen Horowitz (a16z) unveiled the lineup for its spring 2024 crypto startup accelerator. This program will provide 25 startups with a 10-week mentorship program led by the a16z crypto team in London. The selected projects include Farcaster infrastructure, decentralized food delivery, and zero-knowledge passport authentication. Startups accepted into a16z’s accelerator receive $500,000 from the firm in exchange for 7% equity. Notable alumni from this program include Flashbots and Phantom.
Another notable accelerator program is Codebase, introduced by the Avalanche Foundation and Ava Labs on November 9, 2023. This program will provide investments ranging from $500,000 to $1 million to selected startups.
Helika, a Web3 gaming infrastructure company, recently announced its collaboration with Pantera Capital, Spartan Capital, Sfermion, and other venture capital firms to allocate up to $50 million to startups participating in its new Web3 gaming accelerator, Helika Accelerate.
The crypto market has witnessed a resurgence of venture capital activity as the bull market gains momentum. For instance, crypto-native venture firm 1kx recently raised $75 million in an oversubscribed fundraising round, while Hack VC closed a $150 million round in February.
Sam Lehman, principal at Symbolic Capital, emphasized in a post that robust crypto accelerators play a crucial role in fostering a sense of community among founders within the network-centric Web3 sphere. Lehman also highlighted the emergence of new crypto accelerators driven by funds seeking to enhance their brand and deploy capital quickly. However, he cautioned about potential predatory practices by some accelerators.
In addition to accelerator programs, investment activity in Web3 gaming has been steadily increasing. 0G Labs recently secured $35 million in a pre-seed funding round with the participation of over 40 crypto-native institutions, including Hack VC and the Blockchain Builders Fund.
In other news, a court ruling allows the U.S. Securities and Exchange Commission (SEC) to proceed with its lawsuit against Coinbase.