Follow Web3 news and funding trends with our daily updated dashboard on startups and investment in the Web3, crypto and blockchain sectors, based on Crunchbase’s comprehensive data.
Last updated: 09/21/2023
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.
The Web3 Tracker is a one-stop shop for following Web3 trends, news and data about venture funding and leading investors in the sector.
Web3 refers to the next evolution of the internet primarily built on blockchain technology. While the concept has been around for just under a decade and didn’t enter mainstream usage until a few years ago, the Web3 sector has attracted more than $100 billion in investment, Crunchbase data shows.
Web3: A brief history
Whereas Web 1.0 represents the early days of the internet and its static, heavy content-related nature, Web 2.0 was the maturation of that into a more user-generated network that brought about more utility, sharing and interactivity.
Web3 could be the most significant step yet. The term was coined by Ethereum co-founder Gavin Wood in 2014 and refers to moving the internet toward decentralized technologies with the promise of increased transparency and accessibility. Proponents say the shift toward Web3 will make the internet open to more innovative technologies and shift power away from large tech companies.
Web3 is an umbrella term used to describe a new iteration of the Internet that’s primarily built on blockchain technology.
While the Internet of today—or Web2—primarily focuses on user generated content, social networking and cloud computing, Web3’s core focus is on decentralization, transparency and accessibility. The technology ushering in this new era was created in response to the centralized nature of the Internet and the perception that a handful of large corporations control what is and isn’t allowed on the web. Web3 proponents say it puts the power back into the hands of users and creates a more open, transparent and accessible Internet ecosystem.
A few examples of Web3 companies in the U.S. include Alchemy, a developer platform that helps companies build reliable decentralized applications; Polygon, a platform for Ethereum scaling and infrastructure development; and Chainlink, a startup that’s focused on making it easier for traditional data sources, such as APIs, to connect with blockchain technology.
The top three Web3 startups by total funding are Block.one, with $4.1 billion raised; Bitstocks Trading Limited, with £1.5 billion ($1.8 billion) raised; and FTX Exchange, with $1.7 billion raised.
The top three startups in the Web3 ecosystem with the highest valuations are FTX Exchange, valued at $32 billion; Blockchain.com, valued at $14 billion; and OpenSea, valued at $13.3 billion.
While Web3 isn’t a technology, there have been innovations created based on what the concept represents: a decentralized internet. An NFT, or non-fungible token, is an example of one such innovation. NFTs allow individuals to claim ownership over digital art and other assets. For example, if you’re an artist, you can turn an art piece into an NFT and sell it on a marketplace like OpenSea. To purchase the NFT, an individual might pay you 5 Ether for ownership rights. Your newly acquired Ether coins could then increase (or decrease) in value based on demand and market conditions.
A cryptocurrency is a digital currency that’s tradeable and uses cryptography to secure transactions. To create more transparency, these transactions are primarily stored on the blockchain, making them completely traceable.
There are a wide variety of cryptocurrencies, each with its own use case. For example, Bitcoin is considered a store of value. Stellar Lumens (also known as XLM), the token created by the Stellar Development Foundation, was created to help individuals transfer money quickly. These cryptocurrencies, and many like them, can be used for things like investing and making purchases.
Note: please do your research before investing in any cryptocurrency or digital asset.
No. Web3 is the name used to describe the innovations that blockchain technology has given rise to. Cryptocurrency is the digital currency used within the blockchain ecosystem.
To understand how Web3 works, first you need to know the basics of blockchain technology. The blockchain is a distributed database, or ledger, that’s not owned by any one entity (decentralization). It stores information, such as cryptocurrency transactions, in a digital format that can’t be edited or deleted (transparency). This information is stored in a “block” that connects to other blocks when it reaches storage capacity limits, creating a chain. Hence the name blockchain.
With the transparent and decentralized nature of the blockchain, developers are now building a new wave of innovative applications that leverage this technology; what is now known as Web3.
Yes. Our Web3 Tracker is a public resource. We do ask that you please cite Crunchbase as the data source and include a link to the Web3 Tracker when possible. For additional press inquiries, email press@crunchbase.com.
Please reach out to support@crunchbase.com if your company’s data needs to be updated or if something is missing.
All of our Web3 news and trends coverage is here.
Circle
$8B
Circle is a financial technology firm that utilizes stablecoins for payments and e-commerce. Circle uses blockchain technology with Circle Pay to ease and improve how users send money. Circle expands its services with a crypto-currency investment product with Circle Invest, enabling anyone to buy and sell crypto assets. It provides crypto-coins and offers OTC trading services via Circle Trade. Its crypto-trading desk provides one of the largest global liquidity pools for digital asset trading and averages $2 billion in monthly volume. Jeremy Allaire and Sean Neville founded Circle in 2013. $140 million from investors including Jim Breyer (Facebook), Goldman Sachs, IDG Capital (Baidu, Tencent), General Catalyst (AirBnB, Snapchat) and Accel Partners backs the company, with its headquarters in Boston, and branches in New York, San Francisco, Dublin, London, and Hong Kong.
Boston, United States, North America
Number of Acquisitions 5
Total Funding Amount $1B
BitGo
$2B
BitGo is an institutional digital asset financial services company that provides clients with security, custody, and liquidity solutions. BitGo supports over 200 coins and tokens and has over $2 billion in assets in its wallet. The company's customer base includes cryptocurrency exchanges and spans more than 50 countries. In 2018, the company introduced BitGo Custody and launched BitGo Trust Company, a qualified custodian purpose-built for storing digital assets.
Palo Alto, United States, North America
Number of Acquisitions 3
Total Funding Amount $172M
ZYBER 365
$1B
ZYBER 365 Develops a sustainable AI chain for a cyber-secure Web3 OS. They provide an operating system that is reliable, decentralized, safe online, and adheres to the core values of environmental sustainability.
Ahmedabad, India, Asia
Number of Acquisitions 0
Total Funding Amount $100M
Flashbots
$1B
Flashbots is a research and development company that focuses on miners and searchers for transparent and efficient MEV extraction. The company is working on mitigating the negative externalities of current MEV extraction techniques and avoiding the existential risks MEV could cause to state-rich blockchains like Ethereum. Their primary focus is to enable a permissionless, transparent, and fair ecosystem for MEV extraction and redistribution..
Grand Cayman, Cayman Islands, North America
Number of Acquisitions 0
Total Funding Amount $60M
DFINITY
$2B
The DFINITY Foundation is a not-for-profit organization based in Zurich, Switzerland, that oversees research centers in San Francisco and Zurich. Our mission is to build, promote, and maintain the Internet Computer — and by doing so, improve the world. The Internet Computer extends the functionality of the internet from connecting billions of people to also providing millions of developers and entrepreneurs with a public compute platform — creating a revolutionary new way to build websites, enterprise systems and internet services within an open environment. This public software development platform is created by independent data centers around the world combining computing power using an advanced decentralized protocol called Internet Computer Protocol (ICP). This generational shift in computing aims to take on Big Tech and return the internet back to its free and open roots. DFINITY was founded in 2016 by Dominic Williams.
Zürich, Switzerland, Europe
Number of Acquisitions 0
Total Funding Amount $167M
Blockchain.com
$14B
Blockchain.com is a platform that offers ways to buy, hold, and use cryptocurrency. It creates a financial system for the internet that empowers anyone in the world to control their money. Over 50+ million customers have signed up to use the Blockchain.com platform. It's a fast and easy way to buy bitcoin, trade crypto, send, receive, secure, and borrow digital currencies. The Blockchain.com explorer is one of the most trafficked websites in the world to find out what's happening in the crypto markets and the Blockchain.com exchange supports a fast trading experience.
London, United Kingdom, Europe
Number of Acquisitions 5
Total Funding Amount $490M
OpenSea
$13B
OpenSea is a peer-to-peer marketplace for crypto collectibles and non-fungible tokens. It includes collectibles, gaming items, and other virtual goods backed by a blockchain. On OpenSea, anyone can buy or sell these items through a smart contract.
New York, United States, North America
Number of Acquisitions 3
Total Funding Amount $427M
Dunamu
$12B
Dunamu owns and operates a digital asset exchange (UPbit), two investment exchange platforms (Stockplus and U-Stockplus), and an equity management platform (Onboard). UPbit is a cryptocurrency exchange platform with presence in Korea, Indonesia, Thailand, and Singapore. Stockplus is a securities information/trading platform with an active partnership with 11 broker-dealers. U-Stockplus is an OTC platform providing a trading service for private companies. Onboard helps private companies manage equity electronically for their shareholders.
Seoul, South Korea, Asia
Number of Acquisitions 0
Total Funding Amount $741M
Alchemy
$10B
Alchemy is a web3 developer platform that helps companies to build reliable decentralized applications. Its mission is to provide developers with the fundamental building blocks they need to create the future of technology without the hassle of managing blockchain infrastructure in-house.
San Francisco, United States, North America
Number of Acquisitions 1
Total Funding Amount $564M
KuCoin
$10B
KuCoin is a global cryptocurrency exchange for numerous digital assets and cryptocurrencies. Launched in September 2017, KuCoin has grown into one of the most popular crypto exchanges and already has over 8 million registered users across 207 countries and regions around the world. Known as "People’s Exchange", KuCoin operates in Seychelles, providing users with 24/7 multi-language customer services. Meanwhile, KuCoin has established about 19 local communities in North America, Europe, SEA and other regions, providing users with highly localized services. As the home of crypto gems, KuCoin has supported over 420 projects with 790+ trading pairs. A number of projects like ICP, BOSON, AERGO, RNDR, and DAO had a primary listing on KuCoin. In November 2018, KuCoin announced $20 million (USD) round A funding from IDG Capital and Matrix Partners. In 2021, Forbes Advisor named KuCoin as one of the Best Crypto Exchanges.
Mahé, Seychelles, Africa
Number of Acquisitions 0
Total Funding Amount $180M
ThoreCoin
$65M
ThoreCoin offers cryptocurrencies and digital assets to provide substantial crypto-based liquidity for various types of investments. It specializes in offering a variety of features, including security tokens, a digital asset portfolio, tokenization services, a basket of cryptocurrencies, and digital assets to allow users to invest by purchasing tokens.
Bengaluru, India, Asia
Number of Acquisitions 4
Total Funding Amount $1M
Bubblemaps
$14M
Bubblemaps is the most powerful tool for on-chain investigation! Featuring a playful and engaging visual interface, Bubblemaps simplifies access to on-chain data and lowers the entry barrier for users. We have partnered with several blockchains that share our vision for easy on-chain data, such as Arbitrum, Polygon, Avalanche, BNB Chain, some of them even participating in our fundraising round. Additionally, our visuals are directly accessible on leading DeFi platforms like OpenSea
Paris, France, Europe
Number of Acquisitions 0
Total Funding Amount $3M
Litecoin
$2M
Litecoin is a P2P digital currency for online payments. It is a global payment network that is fully decentralized without any central authorities. Mathematics secures the network and empowers individuals to control their own finances. Litecoin features faster transaction confirmation times and improved storage efficiency than the leading math-based currency. With substantial industry support, trade volume and liquidity, Litecoin is a proven medium of commerce complementary to Bitcoin.
Singapore, Singapore, Asia
Number of Acquisitions 0
Total Funding Amount $1M
Shuju Chain Technology
$32M
Shuju Chain Technology is a digital product developer that uses blockchain, big data, and the Internet of Things technologies to provide users with novel, smart, and high-performance scenario-based goods. It is a new-generation AI middle-end startup that specializes in video intelligence analysis and spatiotemporal data management. The business builds a comprehensive hyper-converged artificial intelligence platform by separately developing artificial intelligence engines, autonomous robots, and the key capabilities of big data middle-end.
Binjiang, China, Asia
Number of Acquisitions 0
Total Funding Amount $2M
THUNDERBIRDS.ME INC
$30M
Fintech | XR/MR + AI | Metaverse & Multiverse
Orlando, United States, North America
Number of Acquisitions 0
Total Funding Amount $5M
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