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# CHART: Web3 startup investment declined by 82% YoY in Q1 2023
- URL: https://www.techloy.com/web3-startup-funding-2021-2023/
- Published: 2023-04-24T12:15:53.000Z
- Updated: 2023-04-24T12:15:53.000Z
- Author: Emmanuel Oyedeji
- Tags: Web3, / Money, / Insights

Investment to venture capital (VC)-backed Web3 startups has plummeted to levels not seen since the industry's early days, as VCs pump the brakes on spending big in the space, based on data aggregated by *Crunchbase*.

This result underscores the woes of an industry that is still reeling from the [dramatic collapse of FTX](https://www.techloy.com/crypto-exchange-ftx-bankruptcy/), as well as [several other crypto lenders](https://www.techloy.com/ftx-crash-crypto-loses-market-value/) and even some of the [banking issues](https://www.techloy.com/infographic-a-timeline-of-silicon-valley-banks-failure/) that rattled the economy in general.

[R.I.P Lazerpay 2021-2023☕Techloy Weekly (formerly The Draft) is a data-focused newsletter providing news and insights into technology across the world’s largest emerging markets from trusted sources. If you’re not already a member, join today. As someone who has been following the journey of Lazerpay, a crypto startup fou…![](https://storage.ghost.io/c/c1/a6/c1a6d111-d951-41ad-a392-c1e841210b93/content/images/size/w256h256/2021/07/techloy-dot.png)TechloyEmmanuel Oyedeji![](https://images.unsplash.com/photo-1657408056887-c8c627f7574a?crop=entropy&cs=tinysrgb&fit=max&fm=jpg&ixid=MnwxMTc3M3wwfDF8c2VhcmNofDF8fHN0YWJsZWNvaW58ZW58MHx8fHwxNjgxNDk1NTU5&ixlib=rb-4.0.3&q=80&w=2000)](https://www.techloy.com/newsletter-rip-lazerpay-2021-2023/)

Venture funding to the industry nosedived by 82% YoY, from $9.1 billion in Q1 of 2022 to only $1.7 billion in Q1 of 2023\. This number also marks a 30% decline from Q4 2022, and the lowest since Q4 2020, when Web3 was still new and only $1.1B was invested.

Deal flow also experienced a significant decline as seen on the *Techloy* Chart below, with only 333 deals being completed in Q1, a significant drop from the previous quarter's 369, and a much steeper decline from the more than 500 deals announced in Q1 2022.

![](https://storage.ghost.io/c/c1/a6/c1a6d111-d951-41ad-a392-c1e841210b93/content/images/2023/04/Funding-To-VC-Backed-Web3-Startups--Q1-2021---Q1-2023-.jpeg)