Web3 Fundraising Insights for Q1 2023: Analyzing Environment and Gaming Trends

Metaverse Post presents the Fundraising Insights for Q1 2023, providing an analysis of investment trends within the web3 and crypto sectors, identifying pivotal industries and leading players from this period.

The crypto landscape experienced significant turbulence in Q1, primarily due to the failures of several financial institutions, including Silicon Valley Bank, Silvergate Bank, Signature Bank, and Credit Suisse. The long-term repercussions of these collapses are yet to fully unfold. Concurrently, the rapid rise of AI, particularly following OpenAI's unveiling of the advanced GPT-4 model, has influenced crowdfunding within the crypto realm.

In summary, during the first quarter of 2023, 108 web3 ventures managed to garner a substantial $814,287,823. These startups categorize into various sectors including metaverse, gaming, AI, social networking, augmented reality (AR), and virtual reality (VR). Within this group, nine metaverse initiatives attracted $56,301,000. Additionally, 25 companies associated with NFTs raised a noteworthy $79,040,000 over the initial three months of 2023.

For context, in 2022, there were 348 companies focusing on NFT, metaverse, gaming, AI, VR, and AR, which collectively raised an astounding $7,164,997,888. This amount represented an increase of $4.8 billion compared to the previous year.

Web3 Trends – Leading Projects by Sector

In the first quarter of 2023, 95 web3 startups accumulated a total of $727,287,823. The gaming and environmental sectors emerged as the frontrunners during this quarter.

Environment

Environmental startup Carbonplace received A sum of $45 million was secured from nine financial institutions, with BBVA, BNP Paribas, Standard Chartered, CIBC, Itaú Unibanco, NatWest, National Australia Bank, SMBC, and UBS participating in the strategic financial round.

GrainChain , a blockchain and IoT-driven platform for agricultural transactions, raised... raised Overstock, Pelion Venture Partners, and Brigham Young University contributed to a $29 million fundraising round.

Gaming 

The gaming sector witnessed 23 startups acquiring a total of $201,720,473. While this figure falls short of last year's impressive results, it remains notable. received $4,487.3 million.

CCP Games, the creators behind the popular sci-fi MMO EVE Online, led a seed round that amassed $40 million, facilitated by Andreessen Horowitz and also supported by prominent participants like Makers Fund, BITKRAFT, HASHED, Kingsway Capital, and Nexon. raised A $21 million seed round was bolstered by Courtside Ventures, Capricorn Investment Group, Greylock, HackVC, and Horizons Ventures.

Web3 soccer gaming platform Matchday received Kratos Studio, an Indian web3 gaming studio, raised $20 million in a seed round led by Accel, with participation from Prosus Ventures, Courtside Ventures, Nexus Venture Partners, and Nazara Technologies. They also successfully acquired a sub-DAO linked with Yield Guild Games DAO, IndiGG.

Avalon Corp., a gaming studio with a metaverse focus, secured $13 million in financing through a round led by Bitkraft Ventures, Hashed, Delphi Digital, and Mechanism Capital. They received backing from Coinbase Ventures, Yield Guild Games, Merit Circle, Avocado Guild, and Morningstar Ventures. raised Createra, a platform for user-generated content within the metaverse, raised $10 million in a Series A funding led by Andreessen Horowitz.

Metaverse

The Ethereum-based MMORPG NFT project, Worldwide Webb, gathered $10 million in a Series A round led by Pantera Capital. raised $28 million was raised in a Series A round spearheaded by the entertainment behemoth Animoca Brands, with other strategic investors including Dragonfly Capital, SuperScrypt, Connect Ventures, Republic Crypto, Blizzard Fund, Galaxy Digital, and Warner Music Interactive.

$25.5 million was accrued in a Series A round led by Andreessen Horowitz. raised Beldex , a firm specializing in privacy solutions geared towards decentralized applications, scored...

$25.5 million from the web3 investment firm DWF Labs. received Kresus, a San Francisco-based web3 mobile app and wallet developer, achieved $25 million in a Series A round driven by Liberty City Ventures, JetBlue Ventures, Franklin Templeton Investments, Marc Benioff, and the Winklevoss twins, alongside Craft Ventures and more.

Messaging

Web3 messaging platform OP3N received $32 million was obtained in a seed funding round. This AI-focused enterprise is at the forefront of developing the next generation of social media platforms.

A group chat protocol and app Towns received The Easy Company , which is innovating a social-oriented cryptocurrency wallet, is preparing for further investment using a $14.2 million seed round, supported by Lobby Capital, 6th Man Ventures, Relay Ventures, Tapestry VC, Upside, and Scribble Ventures.

Privacy

$15 million was raised in a Series A round led by Greenfield, with backing from Slow Ventures, the Artemis Fund, Red Dao, and Warner Music. received $14 million was accumulated in an extended Series A round directed by Neotribe Ventures, with Coinbase Ventures, Samsung NEXT, and Nyca Partners among the contributors.

Wallet

Crypto wallet BitKeep received $30 million from Bitget. 

Sec3 , a firm specializing in security audits and automated solutions, raised $10 million in a seed round led by Multicoin Capital, with other investors including Sanctor Capital and Essence Venture Capital. raised Mawari , an AR and VR company dedicated to creating 3D content for the metaverse, secured $6.5 million in a funding round led by Blockchange Ventures and Decasonic. Other investors included Abies Ventures, Accord Ventures, Anfield, Outlier Ventures, and Primal Capital.

Social Network

Plai Labs raised StoryCo , a platform designed for fan engagement, gathered $6 million in a seed round co-led by Collab + Currency and Patron. Other participants included Blockchange Ventures, Floodgate Ventures, Sfermion, and Flamingo DAO.

In the latter part of 2022, a noticeable shift occurred as investors gravitated towards AI-driven startups. This trend has continued into 2023 as major corporations integrate AI technologies into their offerings. Interestingly, many startups have begun leveraging the AI narrative to attract more investment. raised In Q1 2023, four web3 companies utilizing AI technology successfully raised $48,550,000, with Plai Labs capturing $32 million in a seed round, followed by Sortium, which raised $7,750,000 in another seed round led by Arca.

Fashion

Digital fashion store DressX raised The first quarter of 2023 saw 17 NFT-related projects secure funding totaling $78,040,000.

Intelligence

Analytics platform Metrika received Superplastic distinguished itself with $20 million raised in an Extended Series A round helmed by Amazon’s Alexa Fund, alongside significant contributions from Google Ventures, Galaxy Digital, Kering, and Sony Japan.

Security

Gryfyn , a custodial wallet dedicated to NFTs, landed $7.5 million from Liberty City Ventures, GameFi Ventures, Lavender Hill Capital Partners, Mind Fund, Animoca Ventures, LeadBlock Partners, Angel Hub, Brinc, and various angel investors. raised In another successful round, $6 million was raised led by Citizen X, with participation from Distributed Global, Anagram, Taureon Capital, Infinity Ventures Crypto, Flow Ventures, and several angel investors.

AR/VR

Additionally, $6 million was secured in a seed round involving well-known angel investors such as Guy Oseary, Gary Vaynerchuk, and Ivan Soto-Wright. received An equity-based seed round saw $5 million raised by another promising startup, with investment from Sisu Game Ventures, Sfermion, 2B Ventures, UOB Ventures, Signum Capital, and Machame.

Media

Lifeform , which specializes in creating 3D virtual human avatars, secured $5 million through a Series A funding round led by Geek Cartel, also attracting investment from KuCoin Labs, Foresight Ventures, DHVC, K24 Ventures, and Another Worlds. raised The Web3 virtual pet venture Neopets Metaverse raised $4 million with support from Polygon Ventures, Hashkey Capital, Blizzard Avalanche Ecosystem Fund, IDG Capital, and NetDragon Websoft.

Trends in artificial intelligence 

Cohort , a customer engagement platform, achieved $3,490,000 in a seed funding round backed by Axle Capital and IRIS, with additional support from Kima Ventures, 3founders, and several angel investors.

Metahood, a marketplace focused on metaverse land sales, secured $3 million from 1confirmation, in addition to support from Volt Capital, Neon DAO, Flamingo DAO, and various angel investors.

Trends in NFT

The most active investors during the first quarter of 2023 included prominent names such as Andreessen Horowitz, Bitget, alongside nine institutional banks.

Carbonplace, an environmental startup, successfully raised $45 million from nine traditional banking institutions: BBVA, BNP Paribas, Standard Chartered, CIBC, Itaú Unibanco, NatWest, National Australia Bank, SMBC , and UBS . Notably, only three of these banks had previously engaged in crypto investments. raised Invested in the Series B round of the financial technology firm HQLAᵡ, which has been recognized among the blockchain innovators. Animoca Brands .

Some of their investments include blockchain-focused ventures such as Metaco and Ripple. received They also participated in the Series D funding of Kyash, a provider of mobile-first banking solutions from Japan.

Fungify raised This Silicon Valley-based venture capital firm continues to seek new opportunities within the evolving web3 ecosystem.

NFT management application Metalink received Web3 Investment Insights: Q1 2023 - Trends in Gaming and Eco Initiatives

Fantasy sports game platform Unagi raised Metaverse Post presents its analysis of fundraising activities for the opening quarter of 2023, delving into key patterns evident in the crypto and web3 domains.

Web3 Investment Insights: Q1 2023 - Trends in Gaming and Eco Initiatives raised FTC's Appeal to Prevent Microsoft-Activision Merger Fails

Date of Publication: April 11, 2023 at 10:13 AM; Updated: April 12, 2023 at 6:10 AM received To enhance your experience in local languages, we occasionally use an automated translation tool. It's worth noting that auto-translations may not always be precise, so it's advisable to read with a discerning eye.

During the first quarter of 2023, a total of 108 web3 startups successfully secured investments totaling $814,287,823. raised There's been a noticeable surge in investor interest towards artificial intelligence, whereas metaverse ventures have been struggling to gain significant traction.

Metaverse Post has rolled out its Fundraising Report for Q1 2023, exploring current trends within the crypto and web3 landscapes, highlighting key sectors and players from this quarter. received The crypto industry encountered several upheavals in Q1, marked by the downfall of several notable banks such as Silicon Valley Bank and Credit Suisse. The ramifications of these events on the market are still unfolding. Additionally, the recent hype surrounding AI, particularly with OpenAI rolling out its advanced GPT-4 model, has also influenced the dynamics of crypto investment endeavors.

NFT lending protocol PaprMeme received $3 million from Coinbase Ventures. 

Noted investors

In total, across Q1 2023, 108 web3 firms managed to garner $814,287,823 across various sectors including metaverse, gaming, AI, social media, and augmented/virtual reality. Out of these, nine metaverse-focused initiatives raised about $56,301,000. Furthermore, twenty-five companies within the NFT space collected a cumulative $79,040,000 during the first three months of the year.

It's impressive to note that in 2022, 348 firms engaged in NFT, metaverse, gaming, AI, VR, and AR managed to raise an astounding total of $7,164,997,888, marking a significant increase of $4.8 billion compared to 2021.

BNP Paribas Web3 Trends – Leading Projects by Sector Standard Chartered Bank In the early months of 2023, 95 web3 startups collectively attracted investments amounting to $727,287,823. The gaming and environmental sectors led the charge this quarter. SMBC Nikko Securities $45 million was raised through the participation of nine banks, including BBVA, BNP Paribas, Standard Chartered, CIBC, Itaú Unibanco, NatWest, National Australia Bank, SMBC, and UBS in a strategic investment round.

GrainChain , an innovative platform revolutionizing agricultural transactions via blockchain and IoT technology, Andreessen Horowitz secured $29 million during a funding round supported by Overstock, Pelion Venture Partners, and Brigham Young University.

In total, the gaming sector saw 23 startups raise $201,720,473, which pales in comparison to the previous year's performance.

Crypto exchange Bitget The development team behind the beloved sci-fi MMO, EVE Online, CCP Games , led the way with

Most active metaverse investors

$40 million in seed funding, spearheaded by Andreessen Horowitz, alongside notable contributions from Makers Fund, BITKRAFT, HASHED, Kingsway Capital, and Nexon. in 2022 $21 million was raised in a seed round, fueled by Courtside Ventures, Capricorn Investment Group, Greylock, HackVC, and Horizons Ventures.

The Indian web3 gaming firm Kratos Studio

Bitkraft Ventures acquired $20 million in a seed funding round steered by Accel, with additional backing from Prosus Ventures, Courtside Ventures, Nexus Venture Partners, and Nazara Technologies. They also took over a sub-DAO from Yield Guild Games DAO, known as IndiGG.

Hashed Avalon Corp. , a studio focusing on the metaverse gaming experience,

Delphi Digital gained $13 million in a funding round led by Bitkraft Ventures, Hashed, Delphi Digital, and Mechanism Capital, with support from Coinbase Ventures, Yield Guild Games, Merit Circle, Avocado Guild, and Morningstar Ventures.

Mechanism Capital The user-generated content metaverse platform Createra

Andreessen Horowitz secured $10 million in a Series A funding round led by Andreessen Horowitz.

The crypto-focused VC fund Pantera Capital The Ethereum-based MMORG NFT project Worldwide Webb

Fails

also raised $10 million in a Series A round helmed by Pantera Capital.

Animoca Brands , a key player in the entertainment sector, injected $28 million into a Series A round, with participation from Dragonfly Capital, SuperScrypt, Connect Ventures, Republic Crypto, Blizzard Fund, Galaxy Digital, and Warner Music Interactive.

$25.5 million was raised in a Series A funding round directed by Andreessen Horowitz.

wrote the bank in a statement .

Beldex , a company specializing in privacy solutions for decentralized applications,

garnered $25.5 million from web3 investment company DWF Labs. announced Kresus, a web3 mobile app and wallet developer based in San Francisco,

received $25 million in a Series A round driven by Liberty City Ventures, JetBlue Ventures, Franklin Templeton Investments, Marc Benioff, and notable investors like Cameron and Tyler Winklevoss, as well as Craft Ventures.

$32 million was raised in a seed round by a startup focused on AI-driven social platforms.

Conclusion 

The Easy Company , which is creating a 'social' crypto wallet,

secured $14.2 million in a seed funding round, with participation from Lobby Capital, 6th Man Ventures, Relay Ventures, Tapestry VC, Upside, and Scribble Ventures.

Read more:

• $15 million was raised in a Series A round led by Greenfield, with backing from Slow Ventures, the Artemis Fund, Red Dao, and Warner Music.
• $14 million was raised in an extended Series A round led by Neotribe Ventures, gathering support from Coinbase Ventures, Samsung NEXT, and Nyca Partners.
• Sec3 , a security firm providing security audits and automated solutions,