Venture capital funding into Web3 startups has decreased 82% YoY, falling from $9.1 billion in Q1 2022 to $1.7 billion in Q1 2023, according to data from Crunchbase. The number of total deals dropped, with the 333 deals recorded in Q1 2023 marking a YoY decline of around 33%. The decline in funding was partly due to investors seeking out opportunities in industries they were more familiar with, rather than Web3. Despite this, a report from Galaxy Research found that VC crypto deals increased around 20% in Q1 2023 compared to Q4 2022, although capital investment plummeted significantly YoY. The future of crypto VC activity remains uncertain.
https://cointelegraph.com/news/vc-funding-into-web3-start-ups-down-82-year-over-year-crunchbase