Crypto grants foster innovation amid venture capital exodus

As the bear market keeps slashing venture capital investments in the crypto industry, alternative funding options, such as grants, have been gaining traction as a means of supporting the community while enabling the growth of established projects.

According to Blockchain Grants, at least 40 crypto projects are currently offering grants for developers working on Web3 solutions, while data from Cointelegraph Research indicates that the market downturn has left a void in crypto venture capital, resulting in a 30% drop in funds injected into Web3 projects over the past 12 months.

Grants and venture capital are two different funding mechanisms with distinct purposes and conditions. While grants are often used to support projects that align with specific objectives and values, venture capital seeks startups with high growth potential and a focus on financial returns.

*Venture capital inflow into the crypto industry. Source: Cointelegraph Research*

Yet, receiving grants may only be beneficial for projects if funds are put back into the work, Cumberland Labs CEO Naveen Agnihotri told Cointelegraph. “Grants can be especially helpful for the up-and-coming crypto projects, but only if the funds are put back into the work,” noted Agnihotri, adding that venture capital, otherwise, “can help a founder bootstrap his or her project with a rather helpful style because both parties have been incentivized to engage in such a way.”

Open call for grants

With the goal of keeping projects accountable for funds received while fostering innovation, the SingularityNET team has updated its Deep Funding grant program. Following the recent opening of its third round, the program will now reward teams based on milestones achieved and deliverables, as well as peer-to-peer revisions. Until Sept. 3, the program will receive proposals for five funding pools and plans to distribute over $1.5 million to AI-related projects in the coming months.

“Granting programs hold a pivotal role in shaping the crypto industry’s next phase of developm

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Author: Ana Paula Pereira

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