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: 05/28/2023
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.
Axelar Network
$1B
Axelar is a cross-chain communication tool developing interoperability software to connect blockchain ecosystems, applications, and users. Axelar Network consists of a protocol suite, tools, and APIs, designed to break down the barriers to cross-chain communication. Axelar enables developers to build on the best platform for their needs while leveraging the Axelar stack to unlock cross-chain composability and liquidity. The company was founded by Sergey Gorbunov and Georgios Vlachos in 2020.
Waterloo, Canada, North America
Number of Acquisitions 0
Total Funding Amount $64M
Gauntlet
$1B
Gauntlet builds a blockchain simulation and testing platform for financial systems. The company's blockchain simulation and the testing platform run a series of simulations to test the client's protocol or smart contract and gain intuition on how design choices affect behavior, thereby helping financial institutions by providing transparency and greatly reducing the cost of experimentation so that teams can rapidly design, launch, and scale new decentralized systems. Gauntlet was founded in 2018 and is headquartered in Brooklyn, New York, United States.
New York, United States, North America
Number of Acquisitions 0
Total Funding Amount $45M
LayerZero Labs
$3B
LayerZero Labs is a blockchain messaging protocol developer that allows decentralized applications build across multiple blockchains. The company is a User Application (UA) configurable on-chain endpoint that runs a ULN.
Vancouver, Canada, North America
Number of Acquisitions 0
Total Funding Amount $293M
Ledger
$1B
Ledger develops security and infrastructure solutions for cryptocurrencies as well as blockchain applications for individuals and companies, by leveraging a distinctive, proprietary technology. Launched in 2014, Ledger has designed an acclaimed line of hardware security devices quickly placing the company as a leader in the market with 1,000,000 units sold in more than 165 countries. For enterprises and corporations, Ledger introduced the Vault: a fully managed SaaS solution addressing the need to safeguard a very large amount of multiple cryptocurrencies while mitigating both IT and physical assault threats. The company is also active in the industrial IoT market, leveraging its secure hardware technology to interface sensors and machines to smart contracts or blockchain-based assets. Ledger is headquartered in Paris, has a production facility in Vierzon (France), and offices in San Francisco.
Paris, France, Europe
Number of Acquisitions 0
Total Funding Amount $575M
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
Bitstamp
$62M
Bitstamp owns and operates a digital currency marketplace that allows companies and individuals from all around the world to buy and sell bitcoin, litecoin, ethereum, ripple, and bitcoin cash. Damijan Merlak and Nejc Kodric founded Bitstamp in 2011. It has its headquarters in London in the United Kingdom with additional offices in Luxembourg and Berkeley in California.
London, United Kingdom, Europe
Number of Acquisitions 0
Total Funding Amount $12M
PoseiSwap
$25M
PoseiSwap is a decentralized exchange service provider.
Number of Acquisitions 0
Total Funding Amount $2M
Mayfair Coin
$1M
Mayfair will be the first secure & trusted digital software-as-a-service (SAAS) solution on the blockchain that offers listing/advertising services for anyone seeking rental, leasing, purchasing, and property management services. The platform will simplify and empower private citizens and companies to list, browse and book properties for rental (long/short term), leasing, and purchasing as well. Whether listing or browsing, all parties will require the Mayfair token to engage with listing opportunities, creating coveted and needed utility for citizens who prefer to directly engage with renters, leasers, buyers, and sellers.
London, United Kingdom, Europe
Number of Acquisitions 0
Total Funding Amount $135K
Aki Network
$40M
Aki offers a web3 growth stack to track actual influencer promotion results using on-chain data-driven goods. A variety of products and services have been developed by Aki Network to enable more users and influencers to participate in high-quality project campaigns and get commensurate compensation.
Number of Acquisitions 0
Total Funding Amount $0
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