Venture Capitals (VCs) are back active again in the market with more than $300 Million invested into two big upcoming projects which are Monad and Berachain. 

The two projects raised individually through different stages with Monad successfully raising $225 Million and Berachain raising $100 Million. 

Monad and Berachain Raises Funding 

Monad, the new up-and-coming layer one blockchain with a parallel EVM mechanism has just raised $225 Million through a funding round which was led by Paradigm. 

The funding was contributed by multiple venture capitalists, which explains why it is one of the biggest funding that a crypto project ever received. 

The last time VCs invested heavily into a project was through Wormhole, which raised the same amount of money but within a longer time. 

Monad successfully became one of the most intriguing projects in the VC space due to its parallel EVM technology. 

Parallel EVM which is short for Parallelized Ethereum Virtual Machine, is a mechanism in a blockchain that lets users transact in multiple EVM-Based blockchains at the same time, giving a step up in the interoperability world.

This is the key selling point of Monad, as this technology is the selling point that might increase the communication efficiency between blockchains in the crypto space. 

Berachain funding was also made possible due to its innovation, which is the Proof of Liquidity consensus mechanism. 

The consensus mechanism is new and has never been implemented on a public blockchain, which is why VCs are taking an interest in the project. 

It has successfully raised $100 Million through a funding round that was co-led by Brevan Howard Digital’s Abu Dhabi branch and Framework Ventures.

Both of these projects are still in the early development stage with no mainnet launch in sight, which shocked many crypto enthusiasts when it received such huge funding. 

Interests in Early Stage Developments

This seems to be a normal trend that is happening around venture capitals around the world, as most Crypto VCs are looking into new crypto projects rather than developed ones. 

The trend started happening in 2024 after the market went into a bullish movement, starting in the fourth quarter of 2023. 

According to data from PitchBook, a venture capital data analytical site, the total funding that crypto projects received from venture capitals in the first quarter of 2024 hit $2.5 Billion. 

This is a huge amount to be given to early projects. However, during bullish markets, VCs tend to make their money back easily, which is why most are capitalizing on the potential gain that they might receive, especially heading into the predicted bull market of 2025. 

Monad and Berachain are examples of early projects that have no public product yet but have received massive funding from venture capitals. 

This trend might continue in the future, however, with the current uncertainty in the market, the trend might come to a halt. 

VCs are an important indicator for crypto investors, as they can be seen as signs of buying and selling if looked at closely. 

VC Funding can also be used as data to predict a certain token’s or coin’s initial price when launched as most tokens and coins usually set their initial price not far from their funding or investments from Venture Capital. 

For example, if a project receives funding of $1 Million from a VC and launches its token with a maximum supply of 1 Million tokens, then there is a possibility that its initial price will be close to $1. 

This is done so that the VCs get a return on their investment easily since most tokens and coins tend to go up significantly more from their initial price. 

This is why as traders and investors, especially ones that like to hunt for new cryptocurrencies, following VCs can be a good strategy to maximize profit. 

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