Despite the unprecedented crisis in the crypto market, Web3 startups raised more funds last year than in 2021.
In 2022, Web3 startups have attracted some of the most high-profile venture capitalists on the planet, including investment banks like Morgan Stanley and Goldman Sachs. Most of the fundraising has been led by crypto investment funds such as Binance Labs, Coinbase Ventures and Kraken Ventures.
While the bear market was in full swing, 348 Web3 startups raised a total of $7.16 billion in 2022. According to a magazine report Metaverse Postthis figure is almost double the amount raised in 2021.
Startups that have attracted investors belong to several fields of activity, including games, metaversesocial networks, virtual reality and artificial intelligence. Likewise, several sub-sectors of the crypto market have successfully attracted capital in 2022.
In the second quarter of 2022, metaverse projects and games raised several million dollars. “Then venture capitalists became interested in games to winpaying special attention to blockchain casinos, collectibles, lootboxes and football-related games,” pointed out The report.
Artificial intelligence, a sector that makes investors dream
During the last quarter of 2022, investors turned their attention to Web3 startups specializing in augmented, virtual and mixed reality. of applications artificial intelligence, such as the ChatGPT bot, have also attracted a lot of interest from venture capitalists.
For example, InworldAI raised $50 million in a Series A funding round, while SEED raised $41 million. Similarly, SingularityDAO and MarqVision raised $25 million and $20 million respectively in their funding rounds.
“Venture capitalists are unlikely to lose interest in artificial intelligence (AI) in 2023. More AI startups are expected to secure funding,” the report said. Metaverse Post.
Likewise, given the increase in hacking and crypto scams, investors are focusing more on the security of the crypto ecosystem. Consequently, the total investment received by Web3 startups specializing in blockchain infrastructure increased significantly in 2021.
These Web3 startups that have lured investors
Topping the list is video game studio Epic Games, which raised $2 billion from Sony and KIRKBI. Epic Games intends to use these funds to “achieve its vision for the metaverse and support its growth.” Currently, the company is valued at $31.50 billion.
Next, Yuga Labs, the parent company of Bored Ape Yacht Club (BAYC), has raised over $400 million to develop its Otherside metaverse. Given the dazzling success of its NFT collection, Yuga Labs is now one of the most sought-after Web3 startups by investors.
Animoca Brands, a startup focused on the metaverse, is also in the top 3. It is followed by Immutable, a platform Layer 2 based in Sydney. According to Metaverse Postmost of the investment comes from four venture capitalists.
Who are the biggest supporters of crypto?
Paradigm, a San Francisco-based investment firm, has become the most active investor in the Web3 world. In 2022, the company distributed an envelope of 2.50 billion dollars to 31 crypto projects, including Coinbase, Exchange, magical eden AND Optimism.
With a total investment of 2.20 billion dollars, Andreessen Horowitz (a16z) has become the second most active venture capitalist after Paradigm. The fund is followed by HiveMind Capital Partners which has invested $1.5 billion in Web3 startups. Finally, Binance Labs ranked #4 with a total investment of $1 billion.
While the profit is there, losses are also part of the game. For example, the failure of hedge funds Three Capital Arrows (3AC) has been worth several million dollars to its investors. Without forgetting collapse of FTX which spread throughout the crypto market.
While venture capitalists have the means to recoup their losses, the average investor only has eyes to cry with. Hence the need to carefully study the projects in which we invest.
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