Victor Ugochukwu · Oct 21, 2020 . 5min read
Investors pump $278M into Web3 Projects in August
The report shows 24 deals changed hands between Web3 projects and VC's with $278 million raised by the latter.
By Victor Ugochukwu · Sep 15, 2020 . 5min read
Outlier Ventures, a VC firm which partners and invests in web3 with artificial intelligence, the internet of things and robotics just released its monthly investors report. The report shows 24 deals changed hands between web3 projects and VCs with $278 million raised by the latter.
As the report shows, the funds Web3 projects netted in August was more than what they raised in the whole of Q2. With a median investment of $2.9M across seven verticals, public token sales surpassed equity investment for the first time for three years.
Across seven niches, namely, Derivatives, Lending, Liquidity, DEX, Stablecoins, Consumer Tech and Aggregators, derivatives netted the most investment at 33.3%. In all, DeFi and Fintech sector pulled majority of the investment in web3 related projects in August. With the DeFi industry taking shape, it is only normal that derivative products to support the needs of the players will rise correspondingly. Hence it’s not surprising to see that investors are pumping money into Derivatives sector. A good example is Opium; a derivatives exchange issuing and allowing a Credit Default Swap (CDS) based on Aave’s Credit Delegation Feature.
DEX and Liquidity both of which have a combined 26.6% equally apportioned have been growing nicely. Binance, a prominent Web3 player and investor which has investment stakes in several startups recently also invested in 1inch.exchange recently.
In total, DeFi and Fintech sectors attracted a collective investment of $138M. This represents almost half of the funding for August.
The rest 24% of funds from investors for Web3 projects flowed into Infrastructure and Ledgers. Edtech and Gaming shared 4.2% and 8.3% respectively. Edtech’s number came somewhat surprising, especially with a rising interest in the sector due to COVID.
Top investors are actively supporting Web3 projects.
In the wake of rising investments in web3 projects, some names have made themselves popular among decentralized projects. They are at least 5 VC firms that committed to at least two projects in August. These are Arrington XRP Capital, CMT Digital, Altonomy, Galaxy Digital and Polychain Capital. Moreover, the list is growing, and we may be seeing new names come onboard if DeFi’s current growth rate is sustained.
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Victor Ugochukwu · Oct 20, 2020 . 5min read