Web3 investment up 55% in Q1 as crypto VC interest rebounds

In the initial three months of 2024, the overall funding for Web3 companies experienced a significant surge of 55%, implying that venture capitalists’ enthusiasm towards cryptocurrency has rekindled.

The first quarter of 2024 saw a significant surge: A 55% plus upswing in overall investments, as well as a 36% growth in the number of Web3 venture capital deals compared to the last quarter, based on Q1 data from QuickNode and Artemis’s on-chain report.

In the report it is mentioned that investments were primarily focused on artificial intelligence (AI) and Web3 technologies related to gaming, accounting for a large proportion of the total investment.

“[This indicates] that investments are increasing for the first time in over a year, and suggesting a favorable shift in VC sentiment for web3. In particular, AI and Gaming have garnered the most resounding revival of venture capital enthusiasm among the categories.”

Web3 investment up 55% in Q1 as crypto VC interest rebounds

Demonstrating continued venture capital investment in Web3 and cryptocurrency, Paradigm – a venture capital firm specializing in crypto projects – spearheaded a $225 million funding round for Monad Labs. Monad Labs is developing a novel layer-1 blockchain network aiming to rival Solana. The financing was officially disclosed on April 9.

In the past three months, two significant funding rounds took place for early-stage companies. Berachain secured a $42 million Series B investment, while 0G Labs, which focuses on data accessibility through a blockchain solution for artificial intelligence, raised an impressive $35 million in their pre-seed stage.

The first round of fundraising, known as seed rounds, experienced a significant increase of 53% between the last two quarters. This surge indicates a heightened interest in early-stage deals within the venture capital community. Furthermore, Series A and seed funding rounds witnessed nearly double the amount of investment capital compared to the previous quarter. The report suggests that this trend is a result of venture capitalists becoming more eager to invest in Web3 projects.

Web3 investment up 55% in Q1 as crypto VC interest rebounds

Crypto VC interest reignites ahead of the Bitcoin halving

During the time before the 2024 Bitcoin halving, a few significant investment transactions were made public.

On April 9th, Mezo, a Bitcoin layer-2 network, announced the successful completion of a $21 million Series A investment round, with Pantera Capital spearheading the funding. Mezo provides investors an opportunity to generate returns based on token possession duration, which they refer to as a “Bitcoin Economic Infrastructure.”

On April 3rd, it was revealed that Paradigm was in talks to secure up to $850 million for a new fund. This would mark the largest fundraising effort in the crypto industry since May 2022, when Andreessen Horowitz, based in Silicon Valley, broke the record with their $4.5 billion raise.

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2024-04-17 13:39