State of Play: Web3 Fundraising in Q3 23 💰

Bear with me: Fundraising dipped 36% in Q3, QoQ. 👀 Here are the numbers and a list of the most notable rounds.

Dear Readers,

I want to offer you a quick overview of the current state of Web3 funding.

Many of you may experience a lack of interest in Web3 topics or even a lack of funding. We are deep into the bear market.

My aim is to help you navigate this space with greater confidence by providing you with the data. This time, the numbers tell a consistent story.

Let's dive in.

Here are the stats:

• Overall Q3 fundraising hits $2.1. billion in 297 deals, down 36% from last quarter; deal count was down 6% (288) from Q3 (306)¹

• Early-stage deal share grew to 48% of all deals, significantly exceeding the two-year average. The most projects were funded in the US.

• a16z crypto invested $70m just in September (IYK, Freatic, Bastion, Story Protocol), $162m in Q3 and $495m YTD. Over the past two years, a16z Crypto has been one of the most active crypto VCs, with around $5 billion in investments.

• Among the most active crypto investors, notable names include Snoop Dogg, Mark Cuban, Timbaland, Balaji Srinivasan, and Michael Jordan.

Here’s a list of the most notable rounds in Q3:

• 🍕 Blackbird Labs, Inc.: $24m in Series A led by A16z Crypto. Focuses on customer loyalty for hospitality.

• 🎭 IYK: $17m from a16z crypto. Works on digi-physical experiences via NFTs.

• 🔗 Supra: $24m for cross-chain oracle network. Investors include Animoca Brands, Coinbase Ventures.

• 🌏 DFINITY Foundation: $20m grant via ICP Asia Alliance. Aims to boost Web3, AI in Asia.

• 🌐 Bastion: $25m seed from a16z crypto. Web3 solutions for brands.

• 🎮 Proof of Play: $33m seed co-led by A16z, Greenoaks. On-chain game studio.

• 📊 GEEIQ: $8.2m Series A. Data platform for luxury brands.

• 📚 Freatig: $3.6m seed from a16z crypto. Decentralized information exchange.

• 🎨 Animoca Brands: $20m for Mocaverse project.

• ⚙️ Layer N: $5m seed. Scales financial apps on Ethereum.

• 📖 Story Protocol: $54m led by a16z crypto. Open IP collaboration platform.

• 🇨🇭 GenTwo: $15m Series A. Swiss-based B2B fintech.

• 🌝 MoonPay: Launches venture arm. Web3 infra, gaming, fintech.

• 🛠️ ZetaChain: $27m from multiple investors. EVM-compatible L1 blockchain.

• 🔒 BitGo: $100m Series C. Crypto custody.

• 📈 L1 Digital AG: $152m for its second crypto VC fund.

• 📱 Hi: $30m from Animoca Brands. Web3 financial app.

• ⚡ Flashbots: $60m Series B led by Paradigm.

• 🤖 Futureverse: $54m Series A. AI and metaverse tech.

The most notable funds in Q3:

• 🕹️ CMCC Global: $100m for Hong Kong Web3 fund. Focus on gaming, metaverse, NFTs.

• 💰 Deus X Capital: Launches $1bn firm. Targets digital assets, blockchain, fintech.

• 🌳 Oak Grove Ventures: Launches $60m fund. Targets Web3, AI, biotech.

• ⛓️ Blockchain Capital: Rolls out $580m funds. Visa participates.

• 🌍 Vessel Capital: Launches $55m fund. Targets Web3 infra and apps.

• 🏦 Kbank: Launches $100m KXVC fund. Targets Web3, AI in Asia-Pacific.

That’s it. I hope that’s helpful.

Thank you for being part of the journey.
Keep building! 🚀

– Marc

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1. Source: Architect Partners, Messari