Web3 startups are facing a mammoth decline in funding: Earlier last year, I estimated that web3 funding would drop by 73%. In reality, second-quarter funding in 2023 looked even worse — a full 76% decline from the previous year’s figures, according to Crunchbase. In the first half of 2023, web3 companies raised about $4 billion (miniscule in comparison to the nearly $16 billion invested in the first half of 2022), and investments continued to decline through the end of the year.
Most startups have been challenged by the tepid fundraising market, with AI being the sole bright spot. It’s clear that investors are hesitant to fund crypto and blockchain-inflected businesses right now.
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Curated by Arun