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Startup Funding Hits Five-Year Low, Web3 and Metaverse Lose Appeal Among Investors in 2023

Startup Funding Hits Five-Year Low, Web3 and Metaverse Lose Appeal Among Investors in 2023

CointimeCointime2024/02/02 12:15
By:Cointime

Despite a decrease in startup funding and valuations, there is optimism for a year of stability and predictability among investors and entrepreneurs. However, even cybersecurity funding has been affected by the downturn, with only $8.2 billion invested in startups globally last year. Seed funding has remained strong, with U.S. seed investment increasing by 10% in 2022. The bar for raising a seed round is higher than ever, and Web3 and the metaverse are no longer as popular. Investors are now turning to AI-based startups, which raised nearly $50 billion in 2023, but early-stage AI investment may cool off due to legal implications. MA dealmaking for venture-backed startups has decreased globally, with buyers waiting for valuations to drop further.

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