Web3 firms raise $7.1B in funding through 2022

The Web3 project raised more funding last year than in 2021, despite the pressure of the bear market. So what opportunities are in store for 2023?

Web3 investment interest surged in 2022, divided into four key areas. Interest from commercial banks, namely Morgan Stanley and Goldman Sachs, then successful Web3 Venture funding with global VCs to join game.

Meanwhile, other trends saw Tier 1 digital asset institutions such as Binance Labs, Coinbase Ventures and Kraken Ventures driving or instead pooling in funds. Finally there are network-specific funds as explained in the screenshot below.

Web3 Investment Trends
source: Wholesale Investor

But despite the crypto slump and general bearish sentiment, 348 startups collected or raised a total of $7.16 billion in investment last year. This was up from $4.5 billion over the previous year according to a Metaverse post.

The report segregated the amounts under gaming, metaverse, social networks, infrastructure, artificial reality and virtual reality (AR and VR) and artificial intelligence (AI). However, with increasing innovation and demand, various categories will grab headlines throughout 2022.

Metaverse and gaming projects attract millions of dollars in funding in the second quarter of 2022. In addition, the VCs retained their allotment earn to play projects, “with a focus on blockchain casinos, collectibles, loot boxes, and football-themed games,” Said Report.

But Q4 saw some turning points.

change in investment strategy

In the past quarter, investors turned their attention to augmented, virtual and mixed-reality startups. artificial intelligence, such as the AI ​​chatbot ChatGPT, also Received Lots of interest from VC firms. For example, InworldAI raised $50 million in its Series A round, followed by SEED with $41 million. SingularityDAO raised $25 million, and MarqVision raised nearly $20 million in a Series A game.

Adding more support, the spokesperson said: “VCs are unlikely to lose interest in artificial intelligence (AI) in 2023, with more AI startups likely to receive funding.”

BeInCrypto reported growth ai farming to AI written Books that came out last year.

Moving on to another change in the narrative around investment. Given the rise in hacks and other illegal actions, investors focus on the importance of security In Web3, leading to more investment in infrastructure startups. Here is the list of top projects under the mentioned categories which raised the most funds.

Fundraising activity in 2022 broken down by different categories.  metaverse post
source: Metaverse Post

List of Top Projects by Category

Moving to separate entities within categories, gaming giant Epic Games closed $2 billion in investment funding from Sony and LEGO owner KIRKBI. The creators of Fortnite will use the funding to “advance their vision of the Metaverse and support its continued development.” At the time of writing, the company is valued at $31.50 billion.

Startups attracting the most investment in 2022.  metaverse post
source: Metaverse Post

Makers of Boredom Walk Over to Era Labs Ago yacht clubBAYC), raised over $400 million to build the Otherside Metaverse. Recently, Yuga Labs released a “First Trip” of the Underside experience and teased BAYC fans with an upcoming Second Trip.

Another big name that made the top three list was venture capital Animoca Brands, a metaverse-focused startup. Sydney-based Layer 2 NFT firm, Immutable, came next in line. The report further puts some focus on deep-pocketed investors, namely the four spenders whose total spending exceeds $7 billion.

largest investor

Leading the charge is Paradigm, a crypto-focused investment firm based in San Francisco. The renowned firm spent $2.50 billion in 2022 as it backed 31 projects such as Coinbase, Uniswap, Magic Eden, and Optimism.

Most active funds with over $1 billion invested.  metaverse post
source: Metaverse Post

Following this, Andreessen Horowitz, or a16z, became the second most active investor after Paradigm with $2.20 billion. Meanwhile, HiveMind Capital Partners invested $1.5B in Web3 startups, while Binance Labs ranked #4 with $1B spent in 2022.

Following this, Andreessen Horowitz, or a16z, became the second most active investor after Paradigm with $2.20 billion. Meanwhile, Hivemind Capital Partners invested $1.5B in Web3 startups, while Binance Labs ranked #4 with $1B spent in 2022.

While investing within this group may sound reassuring and attractive, failure is an integral part of it. The first exchange will be Singapore-based crypto hedge fund Three Arrows Capital, also known as 3AC. The collapse caused millions of dollars in damage. this list goes on Detailed Covered extensively by BeInCrypto.

Overall, investors should exercise extreme caution in dealing with technologies that continue to evolve and mature over the years.

disclaimer

All information contained on our website is published in good faith and for general information purposes only. Any action the reader takes upon the information found on our website is strictly at their own risk.

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