Investments plummeting in the first half of 2023


Investing in Web3 is almost like placing your funds on an index associated with the development of the Internet, blockchain and cryptocurrencies. Reason why this sector had the wind in its sails during the years 2021 and 2022, against the backdrop of a bullish market. With, in the first half of last year, an amount raised from venture capital structures estimated at $15 billion by analysts from K33 Research.

It must be said that not a single tech company worthy of the name has escaped the use of this term to sell real or supposed innovation strategies. To the point of seeing certain GAFAM giants like Google claiming to be part of this dynamic, even though its raison d’être is to see them disappear with the excesses of Web2 of which they are the origin. Then the crypto winter obviously also passed through there…

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Web3 – Investments down -70%

The figures fell following the publication of the last rapport of the K33 Research structure entitled: The emerging cryptocurrency industry. A document taken up by The Block analysts to demonstrate a significant drop in venture capital (VC) type investments in the Web3 sector. And again, it is difficult to determine whether this automatically includes cryptocurrencies and blockchain, or if it is simply a case-by-case association.

Anyway the numbers are not good. Because the sums raised during the first half of this year are estimated at around 4 billion dollars. That’s to say a drop of more than 70% compared to the same period last year, with a record of 15 billion dollars.

If we look at Web3 and crypto in total, there was $15 billion invested by VCs in the first half of 2022. But, in the first and second quarters of this year the figure is estimated to be around $4 billion and it could still decrease.”

Anders Helseth

Web3 Investments – No Imminent Threat, But…

However, this decline, which can still be described as cyclical in connection with the cryptocurrency sector, would not not “an imminent threat to Web3 services under construction.” In any case, this is what Anders Helseth of K33 Research says in connection with the results of this report. And this because this digital economy under construction currently represents 10,000 companies for a total of 190,000 employees and an estimated valuation of $180 billion.

Falling Web3 funding is not an imminent threat to Web3 services being built in the coming years, but like all projects, coffers must fill before they run out

Anders Helseth

Would Web3 no longer sell? And this for the benefit of new emerging technologies such as artificial intelligence (iA) at the center of all discussions. The question deserves to be asked, even in the midst of a bear market that does not only affect the cryptocurrency sector. And obviously we will have to wait for a massive return from investors to know which sector will attract the greatest part of the funds available…

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