Deal flows in the broadening digital asset markets

An analysis of where the money is flowing into in the Web 3.0 space

Pivot

4 min readJan 22, 2024

The total investments in the Web 3.0 space was almost close to a $100 Billion dollars. While this is a significant amount, what is even more interesting is the fact that almost 5000 projects / companies were funded in the past 3 years despite a global slowdown in the crypto markets.

According to some reports, Web 3.0 financial market infrastructure companies received most of the attention and funding. Here is a breakdown of the different segments that received funding (disclosed ones only) since 2021.

*Analysis of approximately 5000 Companies from Crunchbase, The Block & Bain Crypto*

The broader Web 3.0 space has a plethora of subsegments which need to be highlighted here as well, because that is where the real delimitation of the Web3 industry comes to fore. While the report focuses on the main segments where the investments have gone, it also breaks down the investments into these various sub-segments. The graphs below highlights the spread in a very good way and it was an eye-opener.

Build the Chains

The above image corresponds to the investments done in the super-segment of Blockchains & Platforms. With over $11 Billion in declared investments by large VC firms, this diagram shows the focus areas of the large funds which lies mostly in Non-EVM general purpose protocols and Scaling & Sidechain solutions in this space. With the going trends, it seems that the upcoming markets in 2024 would see an upswing in the same sub-segments. The opportunities however lie in each of the above segments, with niche investors seeking to plant their monies there.

Of Mines & Games

The interesting part in this report is the report has been the big ticket investments that have gone into Mining companies and Gaming Applications as can be seen in the above images. Needless to say, the past 3 years has seen the rise of gaming companies like Animoca, Axie Infinity, Enjin and some more. In fact gaming and gamification within tokens & projects has been instrumental and the main methodology to drive huge numbers with respect to user onboarding.

Total investments of $9 Billion in Core Infrastructure & $16 Billion for builders of user applications

Finance Takes the Podium

The biggest chunk of the $94 Billion investment — almost 50% of it has gone to those building in the Financial stream. The Final figure is around $49 Billion , which has been shared between Exchanges (CEXs & DEXs), Institutional & Retail Brokers, Banking infra, Payments & Payment Infra, Custody & Wallets and Lending & Credit applications. Here is a break-up of the individual sectors for Web3 Financial Market Infrastructure.

A Value based opportunity for the investors & builders

The above data is testimony to the opportunities that present themselves in the times to come. The current trends indicate a sharp shift in how the world thinks about investments in the Web3 space. These opportunities are first lined up for the entrepreneurs or whom we fondly call #BUIDLers. The plethora of segments available to work with and experiment in will dive the money towards you if the idea is strong, a problem-solver or a even a simple tool that makes experiences better. Web 3.0 is no longer the domain of just the early-stage investors. The spread has widened to include later-stage growth funds, crossover funds, and even buyout funds. The above data corresponds to declared investments in some primary segments of Web 3.0. The depth of this space is huge and the deal flows are very likely to travel down deeper.

About Pivot

Pivot is a global venture accelerator firm dedicated to the Web 3.0 industry, created by founders, for founders. Pivot’s selected startups are focused on milestones & are not bound to periodic curriculum-based programs. Founded by Anshul Dhir, a 3x founder in the Web 3.0 space, and mentor and investor in over 50 companies in Web3. Pivot is being supported by some great founders & Angels in this industry including Polygon, Delphi Digital, Blockchain Founders Group, Liminal, Biconomy, BitsCrunch, Tegro, Router, QuickSwap & more. We are also supported by Tier 1 ecosystems such as BNB Chain, Polygon, Arbitrum, ICP, Manta Network, Mantle apart from many VCs, launchpads, Exchanges & many more.