Web3 Startups Raise Nearly $1.9B in Q1 2024 Despite Overall Downtrend in Crypto VC Interest
Venture capital funding for cryptocurrency and blockchain projects has experienced its first quarterly rise since 2021.
Crunchbase data published today reveals that Web3 startups managed to secure just under $1.9 billion in funding across 346 deals in the first quarter of 2024.
This marks a significant 58% increase from the previous quarter, offering a glimmer of hope amidst the lingering downward trajectory of overall crypto VC interest.
The latest surge in funding can be attributed to investors with a more long-term perspective on Web3, in contrast to the hype-driven “tourist investors” who were prevalent in recent years.
According to Chris Metinko, the author of the report, these investors are currently focusing their attention on the AI sector, indicating a shift in investment strategy.
Metinko explains that there is a growing interest in supporting the underlying infrastructure of the decentralized internet, rather than solely focusing on crypto wallets and lenders, which garnered substantial investments during the peak period of 2021 to 2022.
Although big funding rounds were relatively rare in Q1, a few notable investments stood out.
Exohood Labs, a company merging AI, quantum computing, and blockchain, secured a $112 million seed round at a valuation of $1.4 billion.
EigenLabs, an Ether token “restaking” platform, raised $100 million in a Series B led by a16z crypto.
Additionally, Freechat, a decentralized social network built on blockchain technology, secured $80 million in a Series A round.
These investments, along with others, contributed to the rise in valuations and the emergence of four new Web3 unicorns in Q1.
Despite the recent progress, the future of Web3 remains uncertain.
Metinko
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