TLDR:
Web3 investment increased by 55% in the first quarter of 2024, signaling a rebound in crypto VC interest. AI and gaming-related Web3 protocols received the most investment, with seed round deals seeing the most growth.
Article Summary:
The total investment in Web3 firms saw a 55% increase in the first quarter of 2024, indicating a resurgence in venture capital (VC) interest in the crypto space. This growth was accompanied by a 36% rise in the number of Web3 VC investment deals compared to the previous quarter, as reported by QuickNode and Artemis.
AI and gaming-related Web3 protocols received the majority of investments during this period, reflecting a positive shift in VC sentiment towards web3. Notable investment deals included Paradigm leading a $225 million funding round into Monad Labs and significant funding rounds for Berachain and 0G Labs.
Seed round deals experienced a 53% increase quarter-on-quarter, showcasing a growing interest in early-stage deals. Series A and seed funding rounds also nearly doubled their capital inflows compared to the previous quarter, indicating a renewed willingness among VCs to invest in Web3.
Several prominent investment deals were announced leading up to the 2024 Bitcoin halving, such as Mezo completing a $21 million Series A funding round and Paradigm’s potential raise of up to $850 million for a new fund. These developments highlight the revival of crypto VC interest in the industry.
