Web3 Startups Secure Almost $1.9 Billion in Q1 2024 Amid Crypto VC Interest Decline

Venture Capital Funding in Web3 Projects

Recent data shows a positive trend in venture capital funding for cryptocurrency and blockchain projects, with a notable increase in the first quarter of 2024.

Rise in Funding

• Web3 startups secured nearly $1.9 billion in funding across 346 deals in Q1 2024.
• This marks a 58% increase from the previous quarter.

Reasons for Surge

The surge in funding is attributed to investors taking a long-term perspective on Web3, moving away from short-term hype-driven investments.

Investors are now focusing on supporting the infrastructure of the decentralized internet rather than just crypto wallets and lenders.

Notable Investments

• Exohood Labs secured a $112 million seed round.
• EigenLabs raised $100 million in a Series B.
• Freechat secured $80 million in a Series A round.

Future Outlook

The future of Web3 remains uncertain, with the next few quarters being crucial in determining the industry’s direction.

Factors such as the approval of U.S. spot Bitcoin exchange-traded funds and the upcoming Bitcoin halving could impact the market.

Recent Funding Success

Monad Labs secured $225 million in funding, evoking memories of the golden era of crypto funding in 2021-2022.

Balance and Korea Digital Asset have also seen significant growth in assets under custody, indicating a positive trend in the market.

Analysts’ Predictions

Analysts predict that crypto funds could reach $500 billion to $650 billion within the next five years, showing substantial growth potential.