VCs Bet Big on Interoperability

Funding declined slightly this week, from $316M to $254M, with infrastructure making up the majority of funding for the second week in a row at $200M, nearly 80% of total funding. Infrastructure also had one of the biggest deals of the year – LayerZero Labs, an interoperability protocol that raised $120M in a Series B round. We discuss this deal in more depth later in this report. Other segments lagged behind, with each other category accounting for less than $25M.

There were three crypto funds raised this week. The RxR Opportunities Fund raised $100M to invest in liquid tokens. This fund is...