Key Takeaways
- Total investment volume in Web3 firms soared by 55% in Q1 2024, with a 36% increase in the number of venture deals;
- AI and gaming within Web3 experienced a particularly strong resurgence in funding;
- Significant investments that quarter included a $35M pre-seed round for 0G Labs and a $27M seed round for Avail, reflecting a growing interest in blockchain technology and its applications.
The first quarter of 2024 saw a significant resurgence in venture capital (VC) funding for Web3 companies, with a 55% rise in the total investment volume.
Compared to the final quarter of 2023, this period saw a 36% increase in Web3 venture deals.
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A recent Q1 on-chain analysis suggests a positive shift in VC sentiment towards Web3 technologies, with AI and gaming sectors experiencing particularly strong resurgences in funding.
The report notes:
Series A and Seed funding rounds significantly increased their capital inflow, nearly doubling the amounts raised in the previous quarter, reflecting VCs' renewed willingness to invest in web3.
The quarter saw important early-stage investments, including a $35 million pre-seed investment in 0G Labs, focusing on blockchain solutions for AI applications, and a $100 million investment in crypto startup EigenLayer, Ethereum's restaking protocol.
These investments indicate sustained and growing interest in blockchain technologies, setting a promising tone for future growth and innovation in the sector.
The second quarter has also already seen some significant investments in Web3, including the recent $18M raised in Series A funding for Puffer, a liquid restaking protocol on Ethereum.
