The first quarter of 2024 has brought exciting news for Web3 companies, with a remarkable surge in venture capital funding. According to recent data, the total investment volume in Web3 firms soared by 55% in Q1, accompanied by a 36% increase in the number of venture deals.
One of the standout trends in this period was the resurgence in funding for AI and gaming sectors within the Web3 space. These sectors experienced a particularly strong influx of capital, indicating a growing interest in innovative technologies.
Notable investments in Q1 included a $35 million pre-seed round for 0G Labs, a company focusing on blockchain solutions for AI applications, and a $27 million seed round for Avail, showcasing the industry’s enthusiasm for blockchain technology and its applications.
The positive shift in VC sentiment towards Web3 technologies was further highlighted by a significant increase in Series A and Seed funding rounds, nearly doubling the amounts raised compared to the previous quarter. This reflects a renewed willingness from VCs to invest in the Web3 sector.
The quarter also witnessed important early-stage investments, such as a $100 million investment in crypto startup EigenLayer, Ethereum’s restaking protocol, indicating sustained interest in blockchain technologies.
Looking ahead, the second quarter has already seen substantial investments in Web3, including an $18 million Series A funding for Puffer, a liquid restaking protocol on Ethereum. These investments set a promising tone for future growth and innovation in the Web3 space, showcasing the industry’s potential for continued expansion and development.
