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Web3 Funding Nosedives 82% From Q1 2022 To Q1 2023: Crunchbase Report The total number of deals is also the lowest since Q4 of 2020. The depleting deal number has been a phenomenon since Q1 of 2022.

By Paromita Gupta

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The web3 space is a nascent yet volatile one. While the industry shows potential and has high hopes, the investors and venture capitalists might be taking a step back from betting their money. According to Crunchbase, a market research platform, the funding in web3 projects and startups has plunged from $9.1 billion in Q1 of 2022 to a mere $1.7 billion in Q1 of 2023.

For ease of understanding, web3 refers to startups operating in either or both cryptocurrency and blockchain spaces.

The Q1 of 2023 saw only 333 deals in the space, against 770 in Q1 of 2022 and 506 in Q1 of 2021. It is also down by 30 per cent from the final quarter of last year and is the lowest total since Q4 of 2020 when web3 was unheard of.

READ MORE: VCs Discuss What Drives Investments in Web3 Startups

The total number of deals is also the lowest since Q4 of 2020. The depleting deal number has been a phenomenon since Q1 of 2022.

In Q1 of 2023, VC-backed ventures secured over $800 million, the lowest since more than $600 million was invested in Q1 of 2020.

Blockchain startups raised just about $1.2 billion in Q1 2023, the lowest since $820 million in Q4 2020.

While the global economy has taken a hit, all sectors have been affected, and web3 is not immune to it.

Paromita Gupta

Features Writer with Entrepreneur India

Covering news and trends in AI and Metaverse segments. An avid book reader running her personal blog on the side. You may reach me at paromita@entrepreneurindia.com. 
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