Dynamic Labs' $13.5M: web3 onboarding

$223M in web3 raises across the last two weeks.

December 23, 2023

Profit Pulse: Crypto Chemistry

Today’s post covers the previous two weeks of deal flow given limited activity around the holiday season. Our highlight covers Dynamic Labs, coming fresh off a $13.5M Series A announcement.

In reviewing the deal, we were impressed by the team’s high-profile customer logos as well as its ability to secure blue-chip capital in the fundraise.

According to the project’s docs, the team is focused on building “smart login flows for crypto-native users, simple onboarding flows for everyone else, and powerful developer tools that go beyond authentication.”

Table of Contents

Deal of the Week: Dynamic Labs

  • Dynamic Labs

    • Founded: 2021

    • Team Size: <50

    • Location: San Francisco

    • Chains: EVM-compatible chains, Solana, Flow, StarkNet, Cosmos

Problem: dApp onboarding processes typically leave much to be desired.

Solution: Dynamic, the team’s web3 development SDK, combines all of the features and integrations needed to build a modern crypto dApp.

Core Differentiation: Enables hybrid authentication, embedded wallets, account abstraction, multi-chain access, and more, with only a few lines of code.

Key details include:

  • Product adoption: In 2023 alone, over 1.6M unique users across 6 chains have used the Dynamic platform through branded and embedded wallet logins.

Deal Flow Takeaways

Fundraises: 9 deals; $223M identified
M&A: 1 deals; $100M identified
Public / Funds: 4 deals; $301M identified

Private Fundraises

LINE, a major messaging company in Asia, raised $140M for its NFT initiative.

GFO-X, a UK-regulated crypto derivatives startup, raised a $30M Series B round led by M&G Investments.

Dynamic Labs, a startup developing new non-custodial wallet tools, raised a $13.5M Series A round led by a16z crypto with participation from Founders Fund, Castle Island Ventures, Breyer Capital, Nikil Viswanathan & Joe Lau from Alchemy, and others.

Tres Finance, a web3 tax services firm, raised an $11M Series A round that was led by Faction Ventures with participation from New Form, Boldstart Ventures, Cyber Fund and Ambush Capital.

Farcana, developer of an NFT team-based hero shooter game, raised $10M with participation from Animoca Brands, Polygon Ventures, Merit Circle, Fenbushi Capital, Rarestone Capital, MMPro Trust, Unpopular Ventures, Kapo Capital, Emchain, Hasu Capital, and Dravus Investment.

Lolli, the Bitcoin rewards provider, raised $8M with participation from Bitkraft Ventures.

Metagood, the creators of OnChainMonkey NFTs, raised a $5M seed round led by Sora Ventures.

Tap Protocol, a Bitcoin Ordinals-based development platform, raised $4.2M in a round led by Sora Ventures.

NodeKit, developer of the Avalanche-based SEQ aimed at enhancing rollup chain performance, raised $1.2M.

Morph, a consumer-centric Ethereum layer-2 blockchain, raised a “multimillion-dollar” investment from Bitget.

M&A

Wemade and Whampoa Digital unveiled a $100M fund dedicated to Web3 development, with a focus on the Middle East market.

Public/Fund Financings

Crypto fund inflows continued their 11-week streak, totaling $1.8B, with a focus on bitcoin-based funds. (this is excluded from the ‘Takeaways’ total above)

Cyber.Fund, an early backer in Ethereum that has also backed Cosmos, Solana, and Polkadot has dedicated $100M to fund startups across blockchain, AI, and IoT sectors.

Improbable, a metaverse startup, sold its gaming service subsidiary MPG for nearly $100M to Keywords Studios.

MetisDAO Foundation, custodians of the Metis Ethereum Layer-2 network, dedicated a $100M fund to support its ecosystem, with a focus on sequencer mining and new project deployments.

The Proposer-Builder Separation (PBS) Foundation, backed by Vitalik Buterin and major crypto firms such as Coinbase, Consensys, and Paradigm, is offering $1M in grants for research on Ethereum's PBS to improve decentralization.

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