Crypto funding: Zero-knowledge tools stole the show this week

As ZK proof development continues apace, two startups focused on creating tools for building with zero knowledge announced funding rounds

article-image

Matusciac Alexandru/Shutterstock modified by Blockworks

share

Two projects focused on zero-knowledge — the cryptographic concept of proving a statement true without looking at its contents — announced funding rounds this week.

Variant and 1kx headlined a $6 million fundraise for Modulus, a startup using zero-knowledge to “bring AI on-chain.” Stanford University’s Blockchain Builders Fund also participated.

Modulus pitches itself as using zero-knowledge proofs to let AI developers check that their tools are working as intended without sacrificing decentralization. In a blog post announcing the fundraise, the company said a partnership with Worldcoin is in the works. 

Evolution Equity Partners led a $5 million funding round for Boston-based Toposware, a software development firm hoping to woo developers with its “zkEcosystem.”

Polygon co-founder Sandeep Nailwal participated in the funding round and is listed as a member of Toposware’s advisory council alongside Meta’s director of infrastructure and the global general manager of IBM.

Read more: Polygon’s new zk-powered token is live on Ethereum mainnet

Other notable fundraises

  • Hong Kong-based Animoca Brands received $50 million from a fund owned by Saudi Arabia’s Public Investment Fund to boost Saudi Web3 development 
  • The Ekubo Protocol automated market maker (AMM) is poised to raise $12 million from Uniswap’s DAO after an initial community token vote.
  • Tech investment giant a16z is reportedly aiming to raise $3.4 billion for its next round of venture funds. The firm plans new crypto investment vehicles in 2025. 
  • Base’s Surf derivatives exchange raised $3 million from ABCDE and others to support its creation of the “contracts based version of Uniswap.”

Get the news in your inbox. Explore Blockworks newsletters:

  • Blockworks Daily: The newsletter that helps thousands of investors understand crypto and the markets, by Byron Gilliam.
  • Empire: Start your morning with the top news and analysis to inform your day in crypto.
  • Forward Guidance: Reporting and analysis on the growing intersection of crypto and macroeconomics, policy and finance.
  • 0xResearch: Alpha directly in your inbox. Market highlights, data, degen trade ideas, governance updates, token performance and more.
  • Lightspeed: Built for Solana investors, developers and community members. The latest from one of crypto’s hottest networks.
  • The Drop: For crypto collectors and traders, covering apps, games, memes and more.
  • Supply Shock: Tracking Bitcoin’s rise from internet plaything worth less than a penny to global phenomenon disrupting money as we know it.
Tags

Upcoming Events

Industry City | Brooklyn, NY

TUES - THURS, JUNE 24 - 26, 2025

Permissionless IV serves as the definitive gathering for crypto’s technical founders, developers, and builders to come together and create the future.If you’re ready to shape the future of crypto, Permissionless IV is where it happens.

Old Billingsgate

Mon - Wed, October 13 - 15, 2025

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

recent research

Research

article-image

The network is at a “pivotal juncture,” Blockworks Research’s Marc-Thomas Arjoon said

article-image

Altcoin trade volume has returned to pre-FTX levels, but with a shrinking pool of market leaders

article-image

Solana Foundation’s former head of strategy proposes increasing the disinflation rate

article-image

With much of the bitcoin mining supply chain based in Asia, US-based operations now face higher equipment prices

article-image

Anticipating an economic downturn, venture firms may be less likely to invest

article-image

Trump’s tariffs may have potentially significant impacts on GDP, household spending and food prices — if they hold