As bear markets continue to reduce venture capital investments in the cryptocurrency space, alternative funding options such as grants have become widespread to support the community while allowing existing projects to grow.
According to Blockchain Grants, at least 40 crypto projects are currently offering grants to developers working on Web3 solutions, while data from Cointelegraph Research shows that the market downturn has left gaps in crypto venture capital, resulting in lower invested funds. %: Web3 projects in the last 12 months.
Grants and venture capital are two different funding mechanisms with different goals and timeframes. While grants are often used to support projects aligned to specific goals and values, venture capital looks for startups with high growth potential and a focus on financial returns.
However, receiving a grant can only benefit the project if the funds are repurposed, Cumberland Labs CEO Navin Agnihotri told Cointelegraph. “Grants can be very useful for promising crypto projects, but only if the funds flow back into production,” Agnihotri said, adding that otherwise venture capital “can help founders launch their projects in a very specific style.” It is in the interest of both parties to participate in this way.”
Public competition for scholarships
To ensure projects are accountable for their funds while driving innovation, the SingularityNET team has updated their deep funding grant program. With the third round recently launched, the program now rewards teams based on their achievements and achievements, as well as partner changes. The program will receive five funding pool proposals through September 3 and is expected to allocate more than $1.5 million to AI-related projects in the coming months.
“The grant program plays a key role in shaping the next phase of development and innovation in the cryptocurrency industry. This program provides financial support and a platform for unconventional ideas and encourages creativity, research and innovative solutions,” said Rafael Presa, Deep. finance manager. Since 2022, this program has supported 28 Artificial Intelligences (AI) with grants distributed through decentralized voting within the SingularityNET ecosystem.
