HypeLab, a web3 advertising startup that uses on-chain data to personalize and serve ads, raised seed capital of $4 million in a funding round led by VC firms Shima Capital and Makers Fund.

Founded in part by former Google product manager Ed Weng, who has a background in digital advertising, the adtech aims to sell services to clients eager to get a headstart on connecting with the growing number of consumers embracing blockchain-enabled solutions and products.

Shima Capital General Partner Yida Gao cited the VC’s “excitement for web3 and confidence in adtech playing a critical role in the future of the ecosystem” as reasons for investing in HypeLab.

User adoption in web3

“Ads monetization is a pivotal component that will bring outside capital into the ecosystem and accelerate new user adoption in web3,” HypeLab CEO Joe Kim said in a statement. HypeLab also said it has already helped more than 50 companies “acquire new web3 users."

The fresh capital comes during a somewhat depressed period for new investment in blockchain startups. Last month, with $818 million invested in companies working in the blockchain space, funding in dollar terms fell by about 18% when compared to June, according to The Block data.