Toronto-based Hivello has closed $3.3 million CAD ($2.5 million USD) in pre-seed funding as it looks to make building Web3 applications more accessible.
“Our deep roots in the blockchain payment sector through Banxa give us the unique ability to understand and innovate in the DePIN space.”
The startup’s pre-seed financing included two closes: one in December 2023 totalling $1 million USD, and an additional $1.5 million USD closed at the end of January.
A number of investors participated in Hivello’s pre-seed raise. The startup’s first close of funding in December saw participation from Blockchain Founders Fund, Side Door Ventures, IDG, Bing Ventures, Genesis Block, and NxGen, among others.
The second pre-seed financing close in late January saw participation from Blockchange, Cypher Capital, Primal Capital, and Contango Digital Assets, among others.
“The decision to upsize our round allows us to accelerate our mission and bolster our platform ahead of schedule,” Domenic Carosa, chairman and co-founder of Hivello, said in a statement.
Founded in 2022, Hivello is looking to be a disruptor in Decentralized Physical Infrastructure Networks (DePIN), a concept that revolves around using blockchain technology to develop and maintain infrastructure in the physical world. This approach aims to create more secure, transparent, and inclusive infrastructure networks across various sectors, such as transport, energy, and wireless connectivity.
Hivello has developed a blockchain payment solution that allows users to install an app on their physical devices like computers, routers, modems and storage nodes. Users can then contribute resources so they can start mining DePIN protocols for Web3 applications without any specialized technical knowledge.
Leading Hivello are Carosa and CEO Andrew Smith, who are also the co-founders of another blockchain payment firm Banxa Holdings, which trades on the Toronto Stock Exchange. “Our deep roots in the blockchain payment sector through Banxa give us the unique ability to understand and innovate in the DePIN space,” Carosa said.
Hivello said the capital will be used to expand its technological capabilities, accelerate product development, and strengthen its market position.
Investor interest in the blockchain sector has rebounded in recent months after facing a serious downturn. According to a recent report from KPMG, crypto and blockchain startups saw the most deal volume of any other subsectors of FinTech in 2023.