Here Comes a Wave of Web3 Contenders

Companies involved in products and services related to web3 have attracted a surge in funding over the past two years, as Figure 1 shows. This next iteration of the web incorporates tools such as blockchains, smart contracts, and tokens. Most of the capital raised has gone to venture and growth investments, but later-stage funding has also soared. Investors spread their capital over a wide swath of subsectors and applications, shown in Figure 2. Financial market infrastructure firms compose the largest group funded, while gaming companies also attracted an outsized share of funds.