NSussman Techcrunch Exchange v3 GRY2

Venture capital slows its web3 funding rush – Technology Flow

NSussman Techcrunch Exchange v3 GRY2

Venture capital data The third quarter so far indicates that investments in blockchain-focused startups are shrinking dramatically relative to recent quarters and the main period of 2021.

Data from Crunchbase and PitchBook indicate that the total dollar value of web3 investments could more than halve after totaling $10 billion in some recent quarters — some datasets suggest an even sharper drop when comparing Q3 2022 to previous quarters of the same year.

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Faster business cycles are part of the game in the blockchain world, with periods of hype and spending followed by periods of low user activity. A common view is that boom periods bring in new users for Web3 products and related services, while subsequent busts allow for quieter, building-focused work. Here’s how Coinbase explained the pattern in its recent earnings deck:

Screen Shot 2022 09 01 at 9.32.06 AM

Image Credits: Coinbase

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