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# 📊 Web3 startups saw a 25% decline in funding during 2022
- URL: https://www.techloy.com/funding-to-web3-startups-decline-25-percent-in-2022/
- Published: 2023-01-20T17:27:15.000Z
- Updated: 2023-01-20T17:27:15.000Z
- Author: Emmanuel Oyedeji
- Tags: Web3, / Money

Following a year that was largely dominated by everything Web3-related, funding to VC-backed startups in Web3 in 2022 fell by about a fourth — from a record high of $29.2 billion in 2021 to about $21.5 billion in 2022, according to data from Crunchbase.

The still-young space experienced a cooling of investor's interest following venture capital spending pullback globally and investors turning to more mature, proven industries in the year.

As for deal count, it remained pretty even with a difference of just fewer than 100 deals between the two years. However, unlike 2021 when FTX, NYDIG and Robinhood raised rounds of $1 billion or more, 2022 saw no round nearly that size.

Two other startups also raised $400 million rounds this year in the sector — FTX and FTX US. Overall, there were three dozen rounds in 2021 of $200 million or more that went to VC-backed Web3 startups, while 2022 saw only 25.

![](https://storage.ghost.io/c/c1/a6/c1a6d111-d951-41ad-a392-c1e841210b93/content/images/2023/01/Funding-to-VC-backed-web3-startups--2017---2022---1-.png)