16 crypto startups raised over $94 million, with Sound, a Web3 music marketplace, leading the way by securing $20 million in a Series A round. The project aims to provide a better model for artists to make money by allowing them to sell their music as song NFTs.

Startup companies and the venture capital ecosystem are facing multiple challenges in today's business world. The COVID-19 pandemic has disrupted the economy and forced many companies to reevaluate their strategies. As a result, many investors have become more cautious, leading to a decrease in funding for early-stage companies. Additionally, startups are facing intense competition and a shortage of skilled workers, making it difficult to attract and retain talent.

Character.AI, a platform that allows users to create AI-powered chatbots modeled after figures like Tony Soprano and Elon Musk, is in talks with investors about raising additional funding, according to a person with direct knowledge. The discussions come just four months after the company announced a $150 million funding round at a $1 billion valuation.

Silent Protocol, a startup initiative led by researchers from TÜBİTAK BİLGEM, is focused on developing a scalable privacy layer for existing applications without the need to swap liquidity from existing pools. The project has received initial funding from venture capital firms such as Zee Prime Capital, Mechanism Capital, Hypersphere, and Daedalus, among others, and has recently secured a $5 million funding round led by Sora Ventures. Silent Protocol aims to extend its network into and beyond web3 by constructing a security layer for their applications compliant with MiCA regulations in the European Union, providing a crucial data privacy layer for institutions transitioning into the web3 space. Silent Protocol's approach offers a scalable privacy layer that doesn't necessitate liquidity swaps, which could shift how traditional financial institutions engage with the decentralized finance sector.

AGII, a Web3 and AI startup, has secured $15 million in funding and launched the beta version of its AI-driven content generation platform. The funding round, led by prominent investors in the tech industry, is a testament to the potential of AGII in transforming the content generation process.

Vilma Mattila, one of the co-founders of blockchain network 5ire, is stepping down from her position due to internal disputes with other co-founders making decisions without her consent. 5ire raised $100 million in Series A funding last year, valuing the company at $1.5 billion.

Primal, a startup dedicated to developing bitcoin-infused Nostr applications, has raised $1 million in funding from Ten31, Hivemind Ventures, and others, and aims to enable users to send small amounts of bitcoin called "zaps" to other users and their posts, anywhere in the world.

Karta, a startup based in London that offers metaverse marketing services to brands, has raised $1.1m (£852,000) in funding. Despite waning interest in metaverse technology, Karta plans to use the capital injection to expand its team, develop its platform, and expand its regional reach.

Alluvial, the software company behind Liquid Collective, has raised $12 million in a Series A round co-led by Ethereal Ventures and Variant. Other backers include Brevan Howard Digital, Coinbase Ventures, Kraken, and Avon Ventures. Liquid Collective offers a protocol for "liquid staking" for Ethereum, catering to institutions and traditional finance.

Travel tech startup NeoKe has secured funding of €1.3 million from Dreamcraft Ventures, ff Venture Capital, GHARAGE: Vision Hub of Gebr.Heinemann, and Plug & Play to further develop its breakthrough decentralised digital identity and biometrics solutions for travel.