The first quarter of 2024 has witnessed a remarkable surge in investment within the Web3 sphere, signaling a resurgence of venture capital (VC) interest in crypto ventures. According to the latest insights unveiled in a comprehensive Q1 on-chain report by QuickNode and Artemis, total investment in Web3 firms has skyrocketed by over 55%, painting a vivid picture of renewed confidence in Web3 protocols.
What’s more, the number of Web3 VC investment deals has surged by an impressive 36% compared to the previous quarter, indicating a broader embrace of Web3 innovations within the VC community. This significant uptick in both investment volume and deal frequency underscores a resounding resurgence of interest in Web3 technologies.
Leading this charge are artificial intelligence (AI) and gaming-related Web3 protocols, emerging as the flag bearers of this newfound enthusiasm. According to the report, these sectors have witnessed an unprecedented surge in investor interest, signaling a monumental shift in VC sentiment towards Web3.
A standout example of this newfound enthusiasm is the recent $225 million funding round spearheaded by crypto-focused VC firm Paradigm into Monad Labs. Monad Labs, pioneering a new layer-1 blockchain network set to rival Solana, has captured investor attention, showcasing the growing interest in groundbreaking Web3 projects.
Notable mentions in this investment surge include Berachain’s $42 million Series B round and 0G Labs’ $35 million pre-seed funding round. These early-stage investments, indicative of a burgeoning appetite for innovative Web3 ventures, have witnessed a remarkable 53% increase quarter-on-quarter, further solidifying the narrative of a revitalized VC landscape in the Web3 arena.
The report also highlights the substantial growth in seed round deals, up by a staggering 53% quarter-on-quarter. This surge in early-stage investments underscores a growing confidence among VCs in backing nascent Web3 projects, signaling a promising future for the ecosystem.
In summary, the resurgence of VC interest in Web3 during the first quarter of 2024 marks a pivotal moment in the evolution of crypto investments. With AI and gaming leading the charge, coupled with a surge in early-stage funding, the stage is set for an era of unparalleled innovation and growth within the Web3 space.
