Forbes Magazine: Snapshot of the Web3 venture capital market in 2021

2021 is an important year for the Web3 field, and it has gradually established itself as a potential business in the form of an early network.

In recent years, we have seen significant potential and investments in the Web3 ecosystem, major technological innovations and the emergence of consumer technology. These applications are monetary, financial, and even online themselves.

Aptitude

Web3 is about a type of Internet that belongs to developers, users and developers. It aims to destroy the middle class using tokens and decentralized technology. Cryptocurrency, DeFi and NFT are the first applications to find suitable and marketable products and to acquire consumer products.

However, much of the use of Web 3 technology is just beginning. Cryptocurrencies are still available for a small population, less than 10% of the world's population. Decentralized financial systems now have around $ 100 billion in assets, but they still represent a small loss compared to conventional financial systems. Web app 3 has reached tens of millions of users, but still looks pale and pale compared to the millions of web app 2 users.

According to Soundwise's Tascha, recently the first two waves of technology, internet literacy and cell phone knowledge, are showing a huge market share in the industry. In comparison, there are currently only 180 million Ethereum addresses. According to Web3's flagship app, it will take five years to reach the current development billion users.

We are perhaps on the threshold of some of the most significant technological developments since the advent of the internet, providing investment capital with one of the most asymmetric bulls in the world last year.

High-level indicators related to the 2021 market:

By 2021, venture capitalists have invested more than $ 30 billion in cryptocurrency startups around the world.

There are over 65 crypto unicorn firms, over 40 of which were established in 2021. Almost 50 cryptocurrency firms raised over $ 100 million in 2021.

The cryptocurrency's market capitalization has exceeded $ 300 million

venture capital landscape

In 2021, venture capitalists are betting big on crypto startups, with around $ 30 billion invested globally at the end of November and 1,278 companies completed (according to the text of the Pitchbook data). In 2021, blockchain-related startups will grow an average of $ 20 million per day, and the average seed economy will grow from $ 1.5 million to $ 3.3 million by 2020.

We are seeing the creation of big investments that focus on cryptocurrencies. a16z raised $ 2.2 billion in cryptocurrency in June. Paradigm generated $ 2.5 billion worth of cryptocurrency in October. Additionally, big funds such as Tiger and Sequoia and long-term profits have avoided cryptocurrencies and entered the market by investing in too late investments.

As companies invest in the Web3 ecosystem, metrics should increase and competition for capital should be strong. As the competition for capital allocation has intensified, it has become the key to the diversification of different currencies, including level (start and end), region (west and south), date ), and added value (speech, administration, development, easy access, etc.).

start-up layout

At least 65 startups in the cryptocurrency / blockchain space have reached a value of over $ 1 billion due to the increasing frequency of funding in the next phase, and more than 40 companies will transition to unicorn status. by 2021.

By 2021, nearly 50 cryptocurrency startups have raised more than $ 100 million. Historically, the measurement of cryptocurrencies and blockchain finance has been dominated by exchanges, financial firms, technology, and office services. FTX, Celsius, Gemini and Fireblocks are among the most important financial companies, and they are again this year.

At the same time, we have seen great customer satisfaction, as evidenced by the large investments from Sorare, Moonpay, Forte and Dapper Labs. They all focus on integrating the next billion users into the digital heritage ecosystem.

Where am I going? The Web3 ecosystem is now the melting pot of talent (developers and entrepreneurs) and capital (investment companies and businesses). Combined with cutting-edge technology (blockchain / cryptocurrency), you have everything you need for a breakthrough in innovation and value creation. With the development of decentralized technologies and applications and the emergence of mediums such as metadata adoption, major consumers will inevitably adopt Web3.