Web3 Companies Will Likely Attract More Venture Funding In 2023

B. Ali
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Alex Thorn, head of research at cryptocurrency investment firm Galaxy Digital, predicts that Web3 blockchain enterprises and trading-based services will continue to attract the lion’s share of venture money in 2023, just as they did in 2022.

Alex Thorn also predicted that by 2022, the Web 3 industry—which includes NFTs, DAOs, the metaverse, and online gaming—would account for 31% of all transactions. Whereas, trading platforms accounted for 13% of the whole.

Outlook For 2022 For Venture Capital Investment

Previously, we mentioned that 31% of deals in 2022 were in the web 3 sector, which includes non-fungible tokens (NFTs), decentralized autonomous organizations (DAOs), the metaverse, and online gaming. This was revealed by the CEO of Galaxy Digital in an interview.

Thorn saw a steady quarterly decline in both the number of agreements and the total amount spent until 2022, a trend he attributed in part to macroeconomic concerns and the demise of major crypto businesses.

The firm found that enterprises in their later stages of development, especially those involved in the provision of trade and exchange services, were the most likely to receive finance. The US “remains in the top position” for crypto VC deals, according to Alex Thorn, who added that politicians need to come up with policies that won’t discourage innovation.

In a January 1 blog post, Fred Wilson, a technology investor and co-founder of Union Square Ventures, discussed the anticipated macroeconomic condition for 2023 and the necessity for potential web3 investors to exercise some caution.

Since most start-ups won’t be able to secure funding until 2023, Wilson predicted that there will be a flood of applications this year. Venture capitalists will be far more discerning this year and will not invest in just anything that has a chance of success.

 

About B. Ali PRO INVESTOR

Live webinar speaker and derivatives (Forex, Crypto, and Indices) analyst with a broad range of skills for evaluating financial data, investment trends, technical analysis, fundamental analysis, and the best ways to strategies investment selection.  Expertise: Trading Psychology; Speculative Positioning & Market Sentiment; Technical & Fundamental Analysis.