Connect with us

Hi, what are you looking for?


Web3 Funding Sees Uptick in Q1 as Startups Secure Nearly $1.9B: Crunchbase

Despite Web3’s challenging journey in recent years, funding for the sector bounced back in the first quarter this year. It marks the first increase since the final quarter of 2021, a Crunchbase report published Thursday showed.

Web3 startups raised nearly $1.9b across 346 deals, a 58% jump compared to last quarter. However, funding from venture capitalists is still lower year-over-year, and securing large funding rounds is still a challenge.

While startup funding in Q1 2024 surged 58% compared to Q4 2023, it still fell short of the last year’s Q1 performance. Back then, startups secured a significantly higher amount of $2.3b across 670 deals. This year’s Q1 reflects a 17% funding decline and a 48% drop in deal count year-over-year.

Source: Crunchbase

Berachain,, Polyhedra Network Reach Unicorn Status

Valuations appear to be increasing within the industry, as Web3 welcomed four new unicorns during the quarter. AI-related Exohood Labs, Berachain, an Ethereum-compatible blockchain for financial applications,, a blockchain service for selling excess GPUs, and Web3 infrastructure startup Polyhedra Network, all achieved unicorn status.

Moreover, the crypto market’s resurgence is driven by Bitcoin’s nearly 60% price surge and Ether’s 50% increase.

The heyday of the crypto industry swiftly waned in the last couple of years, characterized by the abrupt collapse of FTX and its cascading repercussions, alongside heightened regulatory scrutiny from authorities.

Spot Bitcoin ETFs, Bitcoin Halving Could Boost Web3 Funding Further

Last quarter, the three largest funding rounds amounted to under $300m combined. Exohood Labs, headquartered in London, secured a $112m seed round, valuing the company at $1.4b, for its AI project integrating quantum computing and blockchain.

EigenLabs, located in Seattle and the developer of EigenLayer for Ethereum staking, raised a $100m Series B funding from a16z crypto. Freechat, based in Hong Kong and known for its Web3 social network-centric super applications, closed an $80m Series A funding round.

Crunchbase suggests that the approval of Spot Bitcoin ETFs and the Bitcoin halving event could potentially lead to further growth in the cryptocurrency market, attracting new venture investments.

The post Web3 Funding Sees Uptick in Q1 as Startups Secure Nearly $1.9B: Crunchbase appeared first on Cryptonews.

Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!



Pavel Durov, the founder of Telegram, has received a generous donation from over half a million players of the viral Telegram-based clicker game called...


The crypto industry has made a record $94 million in political donations since 2023 in an effort to support pro-crypto governance. According to a...


As the Floki (FLOKI) bulls eye a quick 50% rally from current levels around $0.00021 to yearly highs above $0.00031 after a key technical...


Bank of America (BAC) upgraded its rating on Coinbase (COIN) shares from underperform to neutral on Friday and raised its price target for Coinbase to...


In a major move, Turkey drafted a crypto bill, tabled by the ruling party (AK Party) Group Chairperson Abdullah Güler on May 16, to...


Hong Kong became the first region outside mainland China to allow users to open digital wallets and hold China’s CBDC e-CNY, otherwise known as...

You May Also Like

Financial Advisors


Financial Advisors


Financial Advisors

The humongous outbreak of the dreaded coronavirus has brought about a groundbreaking change in what the world perceived as ‘normal’. With an estimated 280,391,189...

Disclaimer: Respect, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2024 Respect Investment. All Rights Reserved.