A report by online platform Crunchbase showed that investment in Web3 projects reduced by 82%, from $9.1 billion last year to just $1.7 billion this year.
This is the lowest amount of capital raised in such projects since the fourth quarter of 2020, when the investment amounted to $1.1bn. In addition, Google Trends data shows that the popularity of Web3 is on the decline - despite a surge in 2021, there was a marked drop in search queries related to the industry during 2022.
The study found that the number of deals between venture capitalists and developers declined slightly at the start of 2023, with just 333 deals completed compared to 369 in the last quarter of 2022.
The biggest deal was Blockstream, which attracted $125 million from Kingsway Capital and Fulgur Ventures. They were followed by Ledger, which received $108 million from investors such as Morgan Creek Capital and Cathay Innovation.
