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Despite the hype, the failure of Web3 startups to raise money is still a sad story

web 3

Despite this interest in the space, raising money for Web3 startups is still a challenging process.

Web3 startups are the newest members of the fintech ecosystem. Since the start of 2022, things haven’t been great for Web3 startups. The dramatic market crash and current downturn represent the first major “blow” to the industry. Fundraising can be quite a challenge in times like these, and it’s an essential lifeline for web3 startups bent on weathering this downturn. According to a 2021 Forbes article, the average initial raise went from $1.5 million in 2020 to $3.3 million in 2021. Even in pre-formation, some Web3 startups are raising rounds of up to $3 million.

Despite this interest in the space, raising money for Web3 startups remains a challenging process and there are differences in how this funding is obtained when compared to more traditional startups. Each Web3 fund has an internal Web3 startup selection process, which includes due diligence such as checking legal documents, performing background checks, and performing financial statement checks, for example, before making an investment decision. Also, most Web3 funds have their own standard investment terms, for example, some are only interested in the tokens of the Web3 project, while others invest in both tokens and stocks of a Web3 startup.

The real internet revolution

Web 3.0 has come to change the game for everyone in every industry. Take, for example, the health sector, which is based on Web 2.0. What if there was a way to digitize and automate all current and incoming data to reduce effort and save time? Since Web 3.0 promotes itself as a “search engine” rather than a search engine, “this is conceivable.

It may become easier and faster to treat people based on their medical history and genetic profile. Medical practitioners can rely on smart applications based on Web 3.0 to advance a new condition with a system that can provide fast procedures based on new admissions. The same can be said about prescription and over-the-counter medications. We will also have a system at some point where the doctor-patient relationship will include automated phases to reduce latency and expense.

Due to the huge number of options yet to be discovered, the capabilities of Web 3.0 are unclear. The unstructured web is going to get bigger and better, and it can span industries of all kinds, which is something we can get excited about. As a result, it is reasonable to claim that Web 3.0 is the true Internet revolution that many people eagerly anticipate.

Here are the top Web3 startups that revolutionized the industry
Vayupankh

This company was incorporated in the year 2021 and is headquartered in Chhattisgarh. Bengaluru-based Vayupankh.io provides a technology platform that allows companies to build their own chains, build NFT markets, and generate tokens and swaps to leverage with their other systems. Dapps games will be available on the platform soon.

ribbed

2021 was a great year for Polygon, the largest cryptocurrency and blockchain project in India. Polygon was founded by Indian entrepreneurs Sandeep Nilewal, Jayanti Kanani and Anurag Arjun. It is based on the Ethereum blockchain technology but seeks to address several fundamental concerns. Blockchain technology and architecture allow developers to decentralize applications and services on them through the use of Ethereum, eliminating the high fees and transaction delays associated with the latter.

Statue

It was established in 2016 and is headquartered in Hyderabad. StaTwig helps companies combat supply chain problems, such as counterfeiting, black marketing, and excess inventory, by tracking the movement of each product in the supply chain as it travels. Sid Chakravarthy started this company which has collaborated with AWS, Tech Mahindra, Twilio, Intel and UNICEF. Its primary product is VaccineLedger, which helps several health agencies with Covid-19 vaccinations.

Economics

Biconomy, which provides a cross-chain transaction protocol, was invented by Ankit Jindal, Ahmed El-Balaghy and Sachin Tomar. The latter operates on several blockchains, with the ultimate goal of providing a simple API for services to integrate a decentralized payment gateway. Biconomy’s goal is to make blockchain-based payments available to the general public. It raised $9 million in investments last year in anticipation of the debut of its native token, Bico.

expect ram

It was established in the year 2020 and is headquartered in Delhi, NCR. A DeFi technology called PredictRAM manages risk using a blockchain-based synthetic platform. The company tokens clients’ IT assets and develops artificial tokens that enable decentralized derivatives to be created, configured and traded.

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