Web3 technology companies received $7.1 billion in funding in 2022, with gaming, metaverse, and social networks as the most popular investment areas, as reported by Metaverse Post’s year-end report.
Metaverse Post’s report found that start-ups in gaming, metaverse, social networks, infrastructure, artificial reality, virtual reality (AR & VR), and artificial intelligence (AI) received a combined total of $7,169,997,888 in funding.
Even though the market was unfavorable, the funding total for 2022 was $4.8 billion higher than the previous year.
The year’s top investment category was gaming, while the lowest was artificial intelligence.
Gaming was the most successful investment category, attracting $4.49 billion or 62.5% of the total investment in Web3.
According to the report, Epic Games received the largest amount of funding in 2022, raising $2 billion from investors including Sony and KIRKBI (the owner of LEGO). This helped the company achieve a valuation of $31.5 billion by the end of the year.
The metaverse category was the second most popular investment area in 2022, attracting $1.82 billion or 25.4% of the total investment, according to the report.
The creators of the Bored Ape Yacht Club (BAYC), Yuga Labs, received the second-highest amount of funding in 2022. In March, the company raised $450 million to launch Otherside metaverse as was reported by Cryptoslate.
Investors showed strong interest in start-ups that developed social networking apps that were suitable for the decentralized and secure nature of Web3. These companies attracted $259.1 million in funding, representing 3.6% of the total investment in Web3.
Infrastructure, AR & VR, and AI
The remaining three categories, in descending order of funding received, were infrastructure ($200.8 million), AR&VR ($178.6 million), and AI ($136.5 million).
Several start-ups within the infrastructure category made the top 10 list for most funding received. These included Immutable ($200 million), focused on non-fungible tokens (NFTs), Improbable ($150 million), focused on the metaverse, Sky Mavis ($150 million), focused on gaming, and AngelList ($100 million), focused on start-ups in general. All of these companies fell under the infrastructure category.
Four venture capital firms were the biggest investors in Web3 in 2022, with each firm investing more than $1 billion. Paradigm was the top investing venture capital firm, spending $2.5 billion in 2022 and supporting 31 projects, such as Uniswap, Magic Eden, and Optimism.
Andreessen Horowitz was the second largest investor, with a total investment of $2.2 billion. The youngest venture capital firm, Hivemind, invested $1.5 billion and came in third place, while Binance Labs was the fourth largest investor with $1 billion in funding.
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