https://news.crunchbase.com/web3/vc-backed-funding-drops-q1-2023/
Editor's Note: For more Web3 coverage, please visit Crunchbase's Web3 Tracker, a site to look at startups, investors and funding news concerning all aspects of Web3, cryptocurrencies and blockchain. Powered by Crunchbase's comprehensive data, this site will be continuously updated as the next iteration of the internet grows. We hope this data and our analysis serve as resources for readers to track and understand the Web3 landscape and all it encompasses.
In the first quarter of the year, funding to VC-backed Web3 startups hit its lowest point since the very early days of the space as deal flow continues to slow.
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Venture funding plummeted 82% year to year, dropping from $9.1 billion in Q1 of 2022 to only $1.7 billion, per Crunchbase data.
The funding number is also a 30% decline from the final quarter of last year, and the lowest total since the fourth quarter of 2020 — which saw only $1.1 billion — when many people had never heard of Web3.
Deal flow also continued its pronounced drop, as only 333 deals were complet