Crypto grants foster innovation amid venture capital exodus

cointelegraph.com:

As the bear market keeps slashing venture capital from the crypto industry, alternative funding options, such as grants, have been gaining traction as a means of supporting the community while enabling the growth of established projects in a challenging crypto environment. 

According to Blockchain Grants, at least 40 crypto projects are currently offering grants for developers working on Web3 solutions, while data from Cointelegraph Research indicates that the market downturn has left a void in crypto venture capital, resulting in a 30% drop in funds injected into Web3 projects over the past 12 months.

Grants and venture capital are two different funding mechanisms with distinct purposes and conditions. While grants are often used to support projects that align with specific objectives and values, venture capital seeks startups with high-growth potential and focus on financial returns.

Yet, receiving grants may only be beneficial for projects if funds are put back into the work, Cumberland Labs CEO Naveen Agnihotri told Cointelegraph. "Grants can be especially helpful for the up-and-coming crypto projects, but only if the funds are put back into the work," noted Agnihotri, adding that venture capital, otherwise, "can help a founder bootstrap his or her project with a rather helpful style because both parties have been incentives to engage in such a way."

With the goal of keeping projects accountable for funds received while fostering innovation, the SingularityNET team has updated its Deep Funding grant program. Following the recent opening of its third round, the program now will reward teams based on milestones achieved and deliverables, as well as peer-to-peer revisions. Until Sept. 3, the program will receive proposals