Key Points:
Gaming, Metaverse, and Social Networks are the three most-funded categories, receiving $4.49 billion (accounting for 62.5% of the total investment in Web3), $1.82 billion (accounting for 25.4%), and $259.1 million (accounting for 3.6%).
In addition, the Infrastructure, AR&VR, and AI categories received $208 million, $178.6 million, and $136.5 million in investment, respectively.
Investors will get more interested in several sectors throughout 2022. Although the 2021 NFT bubble burst in the middle of 2022, NFT initiatives continue to draw attention. Projects in the metaverse and gaming attracted significant funding in the second half of 2022. The focus of venture capitalists was on play-to-earn companies, with a concentration on blockchain casinos, collectibles, loot boxes, and football-themed games.
Paradigm emerged as Web3’s most active investor in 2022. Coinbase, Optimism, MoonPay, Chainalanysis, Uniswap, and Magic Eden are among the early to late-stage cryptocurrency firms in the portfolio of the San Francisco-based joint investment organization.
Throughout the year, the fund raised $2.5 billion for initiatives supported by blockchain, growing its portfolio to include 31 Web3 firms. Uniswap, Fractional, Blur, Magic Eden, and Optimism are some of the investments for this year.
When it comes to startups with a focus on the metaverse, Animoca Brands is at the top. The Hong Kong-based corporation makes investments in 13 different projects every year.
A lot of new investment firms were founded in 2022. Israelian Sheva was the most active investor in terms of investments; the company invested in Limit Break and Dynamic, which received $207.5 million in finance.
Sony and LEGO owner KIRKBI invested $2 billion in the global entertainment behemoth Epic Games. The money will help Fortnite’s creators realize its vision for the metaverse and support its ongoing expansion. At the moment, the corporation is worth $31.5 billion. In 2022, it was the startup that attracted the most funding.
Creators of BAYC Yuga Labs raised $450 million in a seed round in 2022 that was steered by a16z. The now-defunct cryptocurrency exchange FTX, along with Animoca Brands, The Sandbox, MoonPay, and strategic partners Sound Ventures, LionTree, Thrive Capital, and others supported the investment. As a result, Yuga Labs will have one of the biggest Web3 seed rounds in 2022.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
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