- Web 3.0 projects received over $7 billion from investors despite a market downturn in 2022
- Most of the funds went to blockchain-based gaming and metaverse projects
- The funding amount is higher than what was raised in 2021
Web 3.0 projects defied the crypto winter last year to attract over $7 billion from investors, with most of the funds going into blockchain gaming and metaverse projects. According to a report by Metaverse Post, Web 3 projects focusing on augmented reality (AR) and virtual reality (VR) also received a significant amount of funding which is likely due to their popularity among top tech companies like Apple and Meta. Other areas that earned investors’ trust include artificial intelligence (AI), social networks and Web 3.0 infrastructure.
Epic Games and Yuga Labs Among Investors’ Favourite
According to the report, startups dealing in Web 3.0 gaming received the largest chunk of the funds at 62.5% or close to $4.5 billion, with Epic Games pocketing $2 billion which it received from Sony and KIRKBI.
Metaverse-based startups came at a distant second only fetching $1.8 billion or 25% of the $7.2 billion in funding raised in 2022, with Yuga Labs raising the most amount in this category. Most investments in metaverse projects originated from Animoca Brands, Shima Capital and Digital Currency Group (DCG).
Startups developing social and fashion platforms occupied the third place with investors only pouring slightly above $250 million. AR, AI, VR and Web 3.0 infrastructure projects managed to cumulatively receive $515 million with AR receiving the highest amount among the three at $200.8 million.
Paradigm Beats Binance Labs to take the Lead
The report revealed Paradigm, Andreessen Horowitz, HiveMind and Binance Labs as “the most active investors in Web 3.0” in 2022, with Paradigm and Andreessen Horowitz leading the pack.
The report confirms recent findings by DappRadar indicating that Web 3.0 games and metaverse projects received over $1.8 billion in funding in Q3 2022. As the Web 3.0 narrative gains momentum, investors are likely to pour more funds into the space.
