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Web3 Investment Soars 55%; VC Sentiment Warms

Web3 VC investment deals rose 36% while seed round deals increased 53%

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Everyone wants a piece of 2024's bull market as investment in the Web3 sector surges.

According to a new report by QuickNode and Artemis, total investment in Web3 companies increased by 55% in the first quarter of 2024 compared to the same period last year.

Web3 VC investment deals rose 36% QoQ with seed round deals seeing the most growth of 53%.

"Series A and Seed funding rounds significantly increased their capital inflow, nearly doubling the amounts raised in the previous quarter, reflecting VCs' renewed willingness to invest in web3," the report states.

However, the hottest category for these investments is AI and how the tech can drive Web3. An example given was 0G Labs, which launched a $35M pre-seed to build a modular AI blockchain

Quarterly number of Web3 investment deals. Source: QuickNode

Last-minute deals ahead of Bitcoin halving were completed earlier this month such as Bitcoin layer-2 network Mezo's $21 million Series A funding round led by Pantera Capital and Paradigm's 850 million raise for a new fund.

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Meanwhile, Silicon Valley based venture capital firm Andreessen Horowitz (A16z) announced a $7.2 billion raise on Tuesday. The funds will be divided into American Dynamism ($600M), Apps ($1B), Games ($600M), Infrastructure ($1.25B), and Growth ($3.75B).

"Each area requires deep expertise, so it’s not wise to try to cross-train someone in, for example, Games and Infrastructure. More importantly, founders building AI foundation models need an entirely different set of networks and capabilities than founders building biotech therapies," A16z stated.