Transak founder Sami Start discusses the evolving landscape of venture funding in crypto, emphasizing a shift towards real-world applications.
Sami Start, the founder of Transak, has observed a notable shift in venture capital dynamics within the cryptocurrency sector. In a recent interview with DL News, he highlighted that venture funds are now more discerning, leading to a decrease in the number of investments made in crypto startups.
Start emphasized that the process of securing funding has become increasingly challenging compared to the previous bull market. Investors are currently favoring companies that focus on stablecoin infrastructure and payment systems, specifically those that demonstrate strong ties to the traditional financial sector and the real economy.
“Abstract ideas no longer attract capital. The focus has shifted to having real users, regulatory compliance, and integrating products into existing financial flows,” Start remarked.
Midas Secures $50 Million in Series A Funding
Amid this selective funding environment, Midas, an on-chain investment platform, successfully raised $50 million in its Series A funding round, with RRE Ventures and Creandum leading the investment.
Other notable investors included Coinbase Ventures, Franklin Templeton, Framework Ventures, GSR, and Ledger Cathay, among others from the institutional and venture capital sectors.
Alongside the funding announcement, Midas unveiled its Midas Staked Liquidity (MSL) protocol, designed to provide immediate liquidity for on-chain assets and minimize settlement delays and counterparty risks. Additionally, the Midas Attestation Engine was launched to enhance transparency, generating cryptographic proofs of reserves that can be independently verified by investors at any time.
The capital raised will enable Midas to diversify its asset offerings, including strategies related to reinsurance and accounts receivable, as well as the launch of tokenized stocks. The company is also planning to integrate its functionalities with Ledger hardware wallets to attract more liquidity.
Vik Singh from RRE Ventures noted the increasing demand for Midas's infrastructure, as tokenization is poised to transform capital markets in the shift toward blockchain. Midas CEO Dennis Dinkelmeyer stated that the aim is to make investing as accessible and interconnected as the internet itself.
In related news, Bloomberg reported in March that the prediction platform Kalshi raised over $1 billion in a new funding round, boosting its valuation to $22 billion.
