Venture capitalists eyeing Web 3.0 and gaming amidst a funding winter

Venture capitalists eyeing Web 3.0 and gaming amidst a funding winter

Given the worldwide macroeconomic situation, top investors and venture capital funds are reportedly directing their capital in emerging technologies in the Web 3.0 space, which represents the next generation of the internet such as Cryptos, NFTs, and blockchain, as well as Metaverse gaming.

In the last two years, the COVID-19 pandemic has stimulated the development of such internet-driven startups including health tech, food delivery, e-grocery, online home services, and ed-tech among others. Observing this pattern has led investors to park their money in the brilliance of these platforms, where there are numerous opportunities.

Andreessen Horowitz (A16Z), a California-based venture capital firm, has already declared funding for Web 3.0 space including USD 4.5 billion for Crypto & Blockchain companies, and USD 600 million for the gaming industry, predominately the Metaverse.

According to reports, gaming startups in India raised USD 1.6 billion in investment in the first nine months of 2021, with two key players being fantasy sports platforms Dream Sports and Mobile Premier League.

Notably, as data becomes more affordable and smartphone penetration in the country grows, Indian startups have made a name for themselves in the gaming field. The country, which currently has over 430 million mobile players, is anticipated to reach 650 million by the end of 2025, with the mobile gaming industry currently accounting for 90% of total gaming revenue in India.

Similarly, many other NFT, crypto, and blockchain-based companies have successfully raised significant capital in India. The crypto industry has grown nearly 40% in the last five years, with over 230 startups and 34 companies recognized as unicorns in this space.

According to Rajan Anandan, managing director at Sequoia Capital, India has great potential for Web3.0, and every startup in the space is having a great season and doing an exceptional job.

The country’s leading VC firm, Sequoia Capital, which has invested in nearly 30 of India's 100 unicorn startups, stated that funding was becoming scanty and that they were simply waiting for the money invested to have an impact on the real economy.

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About the author

Anjali Mishra

Anjali Mishra

A postgraduate in Criminal Law, Anjali Mishra uses her analytical skills to understand and write about all things market. Anjali holds a keen interest in writing insightful articles on healthcare, business, finance, and emerging technologies for AlpenHornNews and numerous other portals. Coming from outside the economical milieu, Anjali aims to write in a way that helps readers with non-technical knowledge understand technical concepts with ease.