DeFi and Web3 Startups Attract $3B in Funding in Third Quarter

Please fol­low and like us:
Pin Share

Fundrais­ing is Down 24% But Decen­tral­ized Sec­tor Hold­ing Its Own in Harsh Year

No sur­prise, DeFi and web3 fundrais­ing has tak­en a hit in a year roiled by a bear mar­ket and a series of cryp­to scan­dals. Yet what is eye open­ing is how much invest­ment con­tin­ues to flow into the bur­geon­ing sector. 

In the third quar­ter, ven­ture cap­i­tal­ists and oth­er investors plowed almost $3B into DeFi, NFTs, and meta­verse star­tups, accord­ing to CB Insights, an invest­ment data provider. While that’s a 24% drop from the sec­ond quar­ter, it’s still more than the $2.7B investors placed in the decen­tral­ized sec­tor in the same peri­od last year. 

Improvement

More­over, fund­ing for blockchain ven­tures in gen­er­al is on pace to hit a record $29B in 2022, a 10% improve­ment from last year, CB Insights said

Still, don’t pop the corks just yet. In Novem­ber, the fail­ure of FTX, the No. 2 cryp­to exchange world­wide, wal­loped con­fi­dence in the entire blockchain sec­tor. With $1B raised last month, fund­ing for DeFi is only one-sev­enth the lev­el it reached in Novem­ber of 2021, the zenith of DeFi invest­ing, accord­ing to DeFi Lla­ma data

DeFi Ignas, a pop­u­lar cryp­to ana­lyst, shared a chart show­ing close cor­re­la­tion between the price of Bit­coin and month­ly fundrais­ing totals from the sec­ond half of 2020 onwards.

Month­ly web3 fundrais­ing totals and Bitcoin’s month­ly highs. Source: DeFi Ignas.

The ana­lyst said that Web3 projects exe­cut­ed 65 fund­ing rounds in Novem­ber, less than half the num­ber in Novem­ber 2021. 

In any event, DeFi and web3 star­tups have received more than $23B in fund­ing since the first quar­ter of 2021, accord­ing to CB Insights. And Ben Lakoff, host of the Cryp­to Mon­days pod­cast, shared data show­ing that VC fund­ing in gen­er­al has fall­en to its low­est lev­el since the first half of 2020, accord­ing to CB Insights.

In that light, web3 and DeFi fund­ing is actu­al­ly look­ing pret­ty good.



Source link

Please fol­low and like us:
Pin Share

Leave a Reply

Your email address will not be published. Required fields are marked *