Web3 Startups Funding Falls $7b in Q4 2022
- According to Crunchbase, last quarter’s numbers are 74% worse than a year before.
- However, the entire 2021 performed well.
Web3 startup funding saw a significant slowdown at the end of 2022, according to data gathered by Crunchbase. The prolonged cryptocurrency winter and the high-profile collapse of the FTX exchange were two main reasons behind the recent slump.
Web3 Funding Plummets from $9.3b to $2.4b
The cryptocurrency industry recorded rapid growth during the pandemic, and all Web3-related projects began to gain alongside, dominating in 2021 and most of 2022. However, the last quarter brought a marked slowdown and a drastic drop in the number of funds pumped into the industry.
In Q4 2022, venture capitalists made 327 investments with a total value of $2.4 billion, which is down nearly $7 billion from the same period a year earlier. In Q4 2021, the Web3 industry witnessed 655 financings that raised $9.3 billion.
The beginning of 2022 maintained a good pace, with $8.9 billion raised in Q1, but a slowdown was evident in subsequent quarters. In Q2 2022, Web3 startups raised $6.8 billion through 567 deals; while in Q3, it was only $3.3 billion in 430 deals.
Only four companies in the Web3 space announced funding rounds worth more than $100 million last quarter, and it was definitely less than 20 similar rounds a year earlier.
Check out the latest FMLS22 session on: "NFTs for Fintechs: From Asset Class to the Machinery of Ownership."
2022 Still a Good Year for Web3
Despite substantial declines since the middle of the year, Web3 startups managed to close 2022 with $21.5 billion of additional capital raised in 1,986 deals. A year earlier, there were only 88 more, but with significantly higher overall funding of $29.2 billion.
Two years ago, Robinhood and NYDIG managed to raise $1 billion. In 2022, the most significant funding was $450 million for blockchain startup ConsenSys.
Fintech Funding Falls with Web3
Last year was generally worse for startups than the record-breaking 2021, according to Innovative Finance. A report published in January showed that global support for the fintech Fintech Financial Technology (fintech) is defined as ay technology that is geared towards automating and enhancing the delivery and application of financial services. The origin of the term fintechs can be traced back to the 1990s where it was primarily used as a back-end system technology for renowned financial institutions. However, it has since grown outside the business sector with an increased focus upon consumer services.What Purpose Do Fintechs Serve?The main purpose of fintechs would be to suppl Financial Technology (fintech) is defined as ay technology that is geared towards automating and enhancing the delivery and application of financial services. The origin of the term fintechs can be traced back to the 1990s where it was primarily used as a back-end system technology for renowned financial institutions. However, it has since grown outside the business sector with an increased focus upon consumer services.What Purpose Do Fintechs Serve?The main purpose of fintechs would be to suppl Read this Term industry shrank by 30% to $95 billion. Meanwhile, the number of completed investments dropped from 6,146 to 5,263.
The UK proved more resilient to global declines, with the local market attracting $12.5 billion, compared to $13.5 billion reported a year earlier. Rising interest rates and market shocks triggered by the war in Ukraine interrupted the fintech industry's decade-long steady growth.
Web3 startup funding saw a significant slowdown at the end of 2022, according to data gathered by Crunchbase. The prolonged cryptocurrency winter and the high-profile collapse of the FTX exchange were two main reasons behind the recent slump.
Web3 Funding Plummets from $9.3b to $2.4b
The cryptocurrency industry recorded rapid growth during the pandemic, and all Web3-related projects began to gain alongside, dominating in 2021 and most of 2022. However, the last quarter brought a marked slowdown and a drastic drop in the number of funds pumped into the industry.
In Q4 2022, venture capitalists made 327 investments with a total value of $2.4 billion, which is down nearly $7 billion from the same period a year earlier. In Q4 2021, the Web3 industry witnessed 655 financings that raised $9.3 billion.
The beginning of 2022 maintained a good pace, with $8.9 billion raised in Q1, but a slowdown was evident in subsequent quarters. In Q2 2022, Web3 startups raised $6.8 billion through 567 deals; while in Q3, it was only $3.3 billion in 430 deals.
Only four companies in the Web3 space announced funding rounds worth more than $100 million last quarter, and it was definitely less than 20 similar rounds a year earlier.
Check out the latest FMLS22 session on: "NFTs for Fintechs: From Asset Class to the Machinery of Ownership."
2022 Still a Good Year for Web3
Despite substantial declines since the middle of the year, Web3 startups managed to close 2022 with $21.5 billion of additional capital raised in 1,986 deals. A year earlier, there were only 88 more, but with significantly higher overall funding of $29.2 billion.
Two years ago, Robinhood and NYDIG managed to raise $1 billion. In 2022, the most significant funding was $450 million for blockchain startup ConsenSys.
Fintech Funding Falls with Web3
Last year was generally worse for startups than the record-breaking 2021, according to Innovative Finance. A report published in January showed that global support for the fintech Fintech Financial Technology (fintech) is defined as ay technology that is geared towards automating and enhancing the delivery and application of financial services. The origin of the term fintechs can be traced back to the 1990s where it was primarily used as a back-end system technology for renowned financial institutions. However, it has since grown outside the business sector with an increased focus upon consumer services.What Purpose Do Fintechs Serve?The main purpose of fintechs would be to suppl Financial Technology (fintech) is defined as ay technology that is geared towards automating and enhancing the delivery and application of financial services. The origin of the term fintechs can be traced back to the 1990s where it was primarily used as a back-end system technology for renowned financial institutions. However, it has since grown outside the business sector with an increased focus upon consumer services.What Purpose Do Fintechs Serve?The main purpose of fintechs would be to suppl Read this Term industry shrank by 30% to $95 billion. Meanwhile, the number of completed investments dropped from 6,146 to 5,263.
The UK proved more resilient to global declines, with the local market attracting $12.5 billion, compared to $13.5 billion reported a year earlier. Rising interest rates and market shocks triggered by the war in Ukraine interrupted the fintech industry's decade-long steady growth.