Venture capitalists are still betting on Web3, according to a senior analyst at data and research firm PitchBook.
Robert Le, senior research analyst, said that VC funding has moved away from centralized crypto services such as exchanges, while companies involved in the Web 3 expansion have seen an increase. increase investment cash flow.
Over the past six months, investors have deployed more money into Web3,” Le said.
During Q3 2022, VCs invested an estimated $1.5 billion in Web3-based companies.
According to PitchBook’s latest report on emerging technologies for the third quarter, by 2027, Web3-based content platforms will bring in an estimated $39 billion in revenue, compared with 3.4 billion in revenue . USD is expected to be reached by the end of 2022.
Le cited the report as saying that VC investment in “exchanges, custodial wallets ” and “lots of centralized lending services” fell by around 85%.
Le said the decline in VC funding was happening “even before the collapse of FTX.”
Looking ahead, Le said the crypto winter will push “non-crypto” investors to pull back, and that’s why “investments will continue to fall into 2023. “
He say. “ Over the past 18 months, crypto has attracted a lot of investors, hedge funds, family funds. You will see a lot of non-crypto investors leaving the area.”
However, PitchBook “suggests that in the second half of next year investments will increase. And we are cautiously optimistic here.”
In the second half of next year, the company said in its report that it expects to see an apparent increase in regulatory capacity , which could give crypto investors “a little bit of confidence.” than”.