Web3 startups are showing signs of resilience in the face of a general downtrend over the past two years, with funding stabilizing and even seeing a slight uptick in recent quarters. According to Crunchbase’s latest report, web3 startups secured $3.7 billion in the first half of 2024. While this figure is down 18% from the first half of 2023, it is up a significant 42% from the second half of last year.
In the second quarter of 2024, web3 startups secured over $2 billion in funding, marking a modest increase from the first quarter. This represents the second consecutive quarter of increased funding following eight quarters of decline.
Despite the overall increase in funding, large funding rounds were scarce, with only seven rounds surpassing the $50 million mark. Monad Labs, a New York-based company, raised $225 million in a round led by Paradigm, boosting the sector’s numbers.
Other notable funding rounds in the second quarter include Farcaster, Berachain, Auradine, and Humanity Protocol, showcasing the diversity of investments in the web3 space.
The industry may be at a potential inflection point, with renewed investor interest and a focus on infrastructure within the Web3 ecosystem. The resilience of cryptocurrencies like Bitcoin and Ether also bodes well for the sector, indicating sustained momentum in the market.
However, there are still challenges ahead, with deal flow dropping in Q2 and investors becoming more selective. The coming quarters will be crucial in determining the future trajectory of Web3 funding, as the sector navigates these challenges and looks towards sustained growth.
Overall, the web3 sector is showing signs of recovery and potential growth, but the road ahead remains uncertain. Stay tuned for more updates on the evolving landscape of web3 funding in 2024.
