New York startup Donut Labs has completed a $7 million pre-seed funding round to develop an AI-driven crypto browser that promises to transform how users interact with blockchain applications. The investment was spearheaded by Sequoia Capital alongside Bitkraft and HackVC, with participation from Solana founders and other prominent ecosystem investors.

Next-Gen Browser Architecture

Unlike conventional browsers, Donut's platform integrates artificial intelligence to interpret both webpage content and user intentions, enabling autonomous execution of blockchain operations. The system features a native cryptocurrency wallet, decentralized exchange connectivity, and on-chain transaction capabilities — all secured through architecturally isolated signing environments.

【Key Innovation】The browser's AI agents perform real-time risk assessment, translating complex blockchain data into plain English with safety ratings. This addresses critical pain points in Web3 navigation where 【42% of users】 report difficulty understanding transaction details according to recent industry surveys.

From Trading Tool to Internet Gateway

While initially targeting crypto traders and DeFi enthusiasts, Donut's vision extends far beyond financial applications. Founder Chris Zhu predicts agentic browsers will become the primary internet interface within a decade, much like smartphones replaced feature phones. ——"We're reconstructing the internet's front end for an AI-driven financial ecosystem,"—— Zhu stated during the funding announcement.

The company plans to expand into payments, gaming, and social interactions while leveraging emerging technologies like decentralized identity protocols. Early testing shows the platform can execute token swaps 3.2x faster than manual processes while reducing gas fees by 【18-35%】 through optimized transaction routing.

Industry-Wide Implications

Analysts suggest this development marks a significant shift in browser technology, the first major evolution since Netscape's 1994 debut. As AI processing costs decline, mainstream browsers may either integrate similar agentic capabilities or establish interoperability with specialized platforms like Donut.

Notably, the funding comes during a 【21% market correction】 for AI-related crypto tokens, highlighting investor confidence in practical applications over speculative assets. The capital will accelerate development of confidential computing features that could position Donut as a personal "crypto CFO" for retail users by late 2025.

——"This isn't just another crypto wallet extension,"—— emphasized a Matrix Partners representative. ——"We're betting on the rearchitecture of how humans and AI collaboratively navigate the decentralized web."——