In the first quarter of 2023, fundraising among Web3 players decreased by 82% compared to the first quarter of the previous year. Is this really a fatality for the crypto ecosystem?
Web3 sees fundraising become rarer in recent months
Despite the renewed vigor of the market at the start of the year, we are a long way from the effervescence experienced by the ecosystem in the midst of a bull run. This can be observed in particular on the side of fundraising by the various Web3 players who have quite simply decreased by 82% between the first quarter of 2022 and that of this year.
In any case, this is what can be highlighted by referring to Crunchbase data, with a total of $1.9 billion versus $10.6 billion :
Total Fundraising by Quarter in Web3
To put things into context, while the market had already started falling in early 2022, the pessimist was still very far from its peak, and we were still seeing some impressive rounds like the 400 million dollars of FTX for example.
In fact, this flight of investment funds has really gained momentum. after the crash of Terra (LUNA), with a halving of these financings between the first and second quarters. This fall continues to be observed, with a decline of around 30% comparing the past quarter to the last of 2022.
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Is it a fatality?
In its study report, Crunchbase not only notes a drop in the amounts invested, but also a decrease in the amount of fundraising. As a result, the first quarter of 2022 recorded more than 500 transactions compared to 333 in this year.
In addition, the study finds that only 3 funding rounds exceeded $100 million in the past quarterwhile there had been 29 a year earlier, a drop of almost 90%.
However, these events should not necessarily be viewed negatively. The midair explosions of recent months have shown us the dangers of keeping certain actors on IVsthe two most notable being FTX and the Luna Foundation Guard.
In such a difficult climate, the actors who build today thus have the obligation to establish more solid bases if they want to cross the bear market in good conditions, which naturally tends to give the advantage to serious projects.
However, we must not make the mistake of thinking that all the players who will emerge from this market phase are necessarily serious, or that conversely, all those who defaulted were not.
Nevertheless, it is clear that all it does not prevent the ecosystem from developingas the data of the last few months have rightly shown us.
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