Institutional Bulletin: 1X Raises $100 Million, Finoa Secures $15 Million

The cryptocurrency industry continues to attract an increasing number of institutional players. This is evidenced by new investments in infrastructure and the growing attention companies are paying to Bitcoin as an asset class. ForkLog reviews the most significant events of recent weeks.

Android Manufacturer 1X Raises $100 Million

AI and robotics-focused company 1X has closed a Series B funding round, raising $100 million with participation from EQT Ventures.

The project’s main product is androids that “serve society and meet the global demand for labor.”

The funds will be used by 1X to develop second-generation androids, NEO. This bipedal robot is designed for a wide range of household tasks. The development features a built-in learning mechanism and is positioned as “safe for working among humans.”

1X already offers the multi-tasking robot EVE, which moves on wheels, to the public.

In March 2023, 1X raised $125 million in a Series A round led by OpenAI and Tiger Global. The company also attracted other major investors, including Sandwater, Samsung NEXT, Skagerak Capital, and Nistad Group.

European Crypto Custodian Finoa Raises $15 Million

Germany-based licensed staking and custodial services provider Finoa, focused on institutional clients, closed a $15 million funding round. The startup’s valuation remained at $100 million.

The funding round was led by Maven 11 and Balderton, with participation from Blue Bay Ventures, Signature Ventures, Coparion, and Venture Stars.

The process began in June and concluded in December. Initially, the firm planned to raise $5-6 million from current investors.

The amount increased due to interest from external players, thanks to the company’s return to profitability in the fourth quarter of 2023, according to Finoa CEO Christopher May.

Bitfinity Bitcoin Scaling Network Valued at $130 Million

Blockchain project Bitfinity, developing a Bitcoin second-layer network based on Internet Computer, raised $7 million from Polychain Capital, ParaFi Capital, Warburg Serres, Dokia Capital, and Draft Ventures.

They invested through token purchases in two funding rounds. Following the second round, the startup’s valuation reached $130 million, stated Bitfinity co-founder Max Chamberlin.

According to him, the team leverages one of Internet Computer’s key advantages—compatibility with the Ethereum Virtual Machine. This will enable the creation of DeFi applications on the project’s network with Bitcoin support.

The protocol is expected to provide significantly higher speeds for dapps and lower transaction costs compared to Ethereum.

Bitfinity developers plan to launch the main network in the coming months.

Media: OpenAI Discusses New Funding at $100 Billion Valuation

OpenAI is in talks for a new funding round, which could see the AI company’s valuation reach $100 billion or more, Bloomberg reports, citing sources.

According to them, the deal’s terms, valuation, and timing could still change as negotiations are at an early stage. The company declined to comment to the agency.

If the funding round is successful, OpenAI will become the second most valuable American startup after Elon Musk’s space company SpaceX, according to CBInsights.

Venture Investments in Crypto Industry Drop 68% in 2023

In 2023, venture capitalists invested $10.7 billion in blockchain startups, a 68% decrease from the previous year ($33.3 billion).

The majority of funds were invested in the first half of the year, followed by a significant decline in funding volumes. In November, amid market recovery, signs of renewed business activity emerged.

The share of deals concluded at early stages (pre-seed and seed rounds, Series A) increased compared to the previous year, when more funds were directed to relatively mature projects.

Among investors, the most popular sectors were: NFT, gaming, infrastructure, Web3.

Despite the 68% decline, 2023 was the third-largest year for investments relative to previous periods, as shown in the diagram below:

Also on ForkLog:

• Binance Research: AI-related projects attracted $298 million in 2023.
• Bitget identified gender inequality in the blockchain industry.