Artificial Intelligence

Story

Nomad

<p style="text-align: justify">You can also read this news on BH NEWS: <a href="https://en.bitcoinhaber.net/investors-bet-big-on-crypto-ai-startups" data-wpel-link="internal" rel="noopener noreferrer nofollow">Investors Bet Big on Crypto-AI Startups</a><br></p>
<p style="text-align: justify">Crypto-Artificial Intelligence startups have taken center stage in venture capital investments, with significant funding rounds being led by companies strongly focused on <a href="https://futurearticles.co/openai-gpt-4o-vs-anthropic-claude-3-5-who-will-win-the-duel/" target="_blank" rel="noopener noreferrer nofollow" data-wpel-link="exclude">artificial intelligence</a> in the cryptocurrency sector. These startups have attracted substantial investments and reached billion-dollar valuations in their early stages.</p>
<h2 id="recent-high-investment-crypto-artificial-intelligence-startups">Recent High-Investment Crypto-Artificial Intelligence Startups</h2>
<p style="text-align: justify">One standout example is Story Protocol, a Layer-1 Blockchain network initiated by PIP Labs, aiming to tokenize intellectual property to reward original creators in the AI era. PIP Labs recently completed an $80 million Series B funding round led by a16zcrypto, raising its valuation to an impressive $2.25 billion.</p>
<p style="text-align: justify">Similarly, Sahara Labs, which developed the decentralized Sahara AI platform to fairly compensate AI contributors, received a $37 million investment co-led by Pantera Capital and Polychain Capital. Another notable investment was in Sentient, founded by Sandeep Nailwal of <a href="https://en.bitcoinhaber.net/potential-setback-and-recovery-for-polygons-matic-token" data-wpel-link="internal" rel="noopener noreferrer nofollow">Polygon</a>, which secured an $85 million seed round last month.</p>
<h2 id="what-drives-excitement-around-crypto-ai-startups">What Drives Excitement Around Crypto-AI Startups?</h2>
<p style="text-align: justify">The surge in interest and investment prompts the question, “What is driving the excitement around Crypto-AI startups?” According to many venture capitalists, the convergence of Artificial Intelligence and Blockchain fuels the enthusiasm. Jed Breed, founder of Breed VC, views AI as a once-in-a-generation innovation, part of the standard hype cycle, where significant capital flows even though real innovations are still emerging.</p>
<p style="text-align: justify">Rajiv Patel-O’Connor, director of Framework Ventures, notes that both AI and crypto are significant narratives, and their combination is a major excitement driver. Tom Schmidt, general partner at Dragonfly Capital, highlights the growing awareness of the drawbacks of centralized models, suggesting decentralized tools as potential solutions.</p>
<h2 id="key-takeaways-for-investors">Key Takeaways for Investors</h2>
<p style="text-align: justify">Here are some concrete and valuable insights for <a href="https://finance.coin-turk.com/" rel="noopener noreferrer nofollow" target="_blank" data-wpel-link="exclude">investors</a> considering Crypto-AI startups:</p>
<ul>
 <li>Invest in startups with clear value propositions and expertise in both AI and Blockchain.</li>
 <li>Be cautious of projects riding on hype without substantial innovation.</li>
 <li>Evaluate the potential for true decentralization benefits versus mere decentralization claims.</li>
 <li>Look for scalable solutions with a strong product-market fit.</li>
</ul>
<p style="text-align: justify">Despite the optimism, significant concerns remain. Erick Zhang, managing partner of Nomad Capital, warns that many startups could fail due to a lack of expertise or clear value propositions. Schmidt echoes these concerns, emphasizing that relying too heavily on decentralization without tangible benefits is not a recipe for success. The influx of talent into the crypto-AI space is a positive sign, but real innovation and first-principle thinking are crucial.</p>
<h5><span style="font-weight:bold;font-size:16px">The post first appeared on BH NEWS: </span> <a href="https://en.bitcoinhaber.net/investors-bet-big-on-crypto-ai-startups" data-wpel-link="internal" rel="noopener noreferrer nofollow">Investors Bet Big on Crypto-AI Startups</a></h5>

Investors Bet Big on Crypto-AI Startups

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