VC funding into Web3 start-ups down 82% year-over-year: Crunchbase

According to data from Crunchbase, venture capital (VC) funding into Web3 start-ups tanked 82% year-over-year (YoY), declining from $9.1 billion in Q1 2022 to $1.7 billion in Q1 2023.

Crunchbase News highlighted the

“Whether that’s enough to bring more venture dollars back to the space — only time will tell,” the report concludes.

In a different report published by Galaxy Research on April 11, the firm looked at the broader amount of VC investment into all crypto companies over the past 12 months.

In a similar vein to the recent trend in Web3 funding, the report indicated that the $2.4 billion invested into all crypto firms in Q1 2023 marked an 80% decline from the $13 billion recorded in Q1 2022.

Notably however, while capital investment plummeted significantly YoY, the report noted showed that the number of VC crypto deals had increased by around 20% in Q1 2023 compared to Q4 2022.

“Historically, venture activity has tracked crypto asset prices pretty closely. Will be interesting to see if crypto VC activity can rebound if prices remain resilient or constructive this year. Lots of macro and monetary headwinds, though,” wrote Alex Thorn, Galaxy’s head of firm-wide research.

CRYPTO VC IN STARES INTO THE ABYSS

Q1 saw the lowest crypto VC activity in 2 years with $2.4bn invested across 439 deals.

investment is down, valuations are down, VC fundraises are down. learn why, view all the data, and learn what the future holds pic.twitter.com/b3JKPjNfzz

— Alex Thorn (@intangiblecoins) April 11, 2023