TL;DR
- Funding in the Web3 sector shows a slight uptick in the first quarter of 2024, according to recent reports.
- Startups raised nearly $1.9 billion in 346 funding deals during the period, marking a 58% increase compared to the previous quarter.
- Some notable cases have been observed, such as the $112 million funding for Exohood Labs.
The Web3 sector has returned to the path of growth, attracting the attention of investors along the way. According to recent reports, funding in the sector experienced a slight uptick during the first quarter of 2024.
After facing a period of decline in funding in recent years, the Web3 ecosystem saw an increase in funding compared to the previous quarter. This marks the first sign of recovery since late 2021, when the sector experienced a notable boom among investors.
During the first quarter of 2024, startups involved in Web3 raised nearly $1.9 billion in a total of 346 funding deals, representing a 58% increase compared to the previous quarter. While this increase is highly positive, it is still below the levels observed in the first quarter of the previous year.
Investors Regain Confidence in the Web3 Industry
The bullish trend in funding indicates that investors are regaining confidence in its potential to revolutionize various sectors through blockchain and cryptocurrencies. Additionally, investments have been driven by growing confidence in the evolution and maturation of the Web3 ecosystem, despite the challenges and volatility experienced in recent years.
Despite the uptick, funding rounds of large capital still pose a challenge for startups. However, some significant cases have been observed, such as the $112 million funding obtained by Exohood Labs, a London-based startup developing an artificial intelligence project that utilizes quantum computing and blockchain. Furthermore, there has been an increase in company valuations, with the emergence of four new unicorns in the quarter.
As the market recovers from recent volatility and price drops, interest in Web3 is expected to continue growing. The recent approval of Bitcoin ETFs and the upcoming halving could provide an additional boost to funding, attracting new investors and capital to the sector.
