2022 Funding Review: Web3 Start-Ups Secured $7.1 Billion Of Total Investment Inflows
According to a report by Metaverse Post, start-ups innovating in Web3 secured $7.1 billion in funding throughout 2022. Multiple reports revealed that the total annual investment inflow in the Web3 space was $7,169,997,888.
The analysis focus on innovators under Gaming, Web3 Socials, Metaverse, Artificial Intelligence (AI), Artificial Reality (AR), and Virtual Reality (VR) categories. Thus, notwithstanding the deep market correction, there was a $4.8 billion increase over the prior year.
Investment Ranking According To Categories
Despite the last-minute trend, the gaming category earned the top spot, while Artificial Intelligence (AI) occupies the last spot. Gaming secured 62.5% funding (about $4.49 billion) from the total annual investment inflow.
According to the analysis, Epic Games received the most significant investment in 2022. Epic, led by KIRKBI and Sony Inc., received $2 billion. This funding round contributed to their recent growth, resulting in a surge in their valuation to $31.5 billion.
In second place is Metaverse, which gained both attention and cash in 2022. Start-ups innovating in the Metaverse sub-category raised $1.82 billion in funding or 25.4% of the entire investment flow.
Leading the way is Yuga Labs, creators of the famous Bored Ape Yacht Club (BAYC). At the end of the first quarter, Yuga Labs raised $450 million in investment to develop the Otherside metaverse.
According to the study, social networking apps fit for the decentralized and security nature of Web3 grabbed the VCs’ attention and ranked third on the list. The start-ups in this category received $259.1 million, or 3.6% of the total investment funding from VCs in 2022.
Infrastructure $200.8 million, Artificial Intelligence $178 million, and Artificial & Virtual Reality $136.5 million represent the last three categories. Start-ups like Immutable (NFT), Improbable (Metaverse), Sky Mavis (Gaming), and AngelList (Fundraising) were among the top 10 start-ups that secured the biggest funding in their category.
Immutable, AngelList, Sky Mavis + Improbable secured $200 million, $100 million, and $150 million in funds, respectively.
Biggest Spenders In The VC Space
Out of numerous distinguished Venture Capital firms, four were the most prolific in 2022, averaging over $1 billion in crypto investment. Paradigm occupied the first position as it disbursed $2.5 billion in the year under review.
The firm funded over 30 projects, with start-ups like Magic Eden, Optimism, and Uniswap among its rich portfolio. In the second position is Andreessen Horowitz disbursing $2.2 Billion to crypto start-ups.
Following Horowitz is Hivemind in the third position. Binance Labs, the investment arm of Binance Inc., came in fourth, as it disbursed over $1 billion to crypto companies last year.
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