Industry start-ups are more optimistic than ever
After the crypto winter nearly froze the sector, much hope remains. Luna’s crash, Celsius’ bankruptcy, and FTX founder Sam Bankman-Fried’s arrest on fraud charges. After that, the venture company withdrew due to the recession.
In 2021, the web3 startup has raised a record $29.2 billion in the world. By 2022, that number had fallen to $21.5 billion, but still, such companies generated a total of $4.8 billion and $4.2 billion in 2020 and 2020, respectively. Earned in 2019, much more than While many black founders and investors who spoke to TechCrunch remain optimistic about the potential of the crypto sector for communities and society at large, black investors in crypto have been skeptical over the winter. The balance has taken a big hit.If anything, last year’s economic adjustment was necessary.
“The bubble had to burst,” said People of Crypto co-founder Simone Berry. “This was unsustainable and needed an economic fix. The bad guys who came in just to make quick money have been eliminated, creating an opportunity to break out of the hype cycle and sustainably ensure ecosystem growth, paving the way for value-creating development. “
Her Pryce Adade-Yebesi, the co-founder of Utopia Labs, agrees. “This period was a legitimate result of a period of rampant speculation and fraud,” he told TechCrunch. “This will be a great time to focus. Get back to the reality of solving problems all over the world. This is a significant change of pace for the universe.”
The black man’s funding of his Web3 founder has only increased, and crypto winter has proven to be one of the most productive years. According to Crunchbase data, the US black Web3 founder raised $60 million (out of a total of $11.9 billion given to all her Web3 startups in the US in 2022). This amount significantly surpasses the $16 million received by such a founder in the record-breaking year of cryptocurrency in 2021 (her Web3 startup in the US reportedly received $16.5 billion in that year). received dollars).
In 2017, it raised $11 million out of $1.03 billion, and in 2018 it raised essentially nothing out of about $2.8 billion. Notice the lines are so thin they don’t look red in the image below.In 2019 and 2020, black web3 founders raised $2.5 million and $4.5 million, respectively, out of $2.4 billion and $3.2 billion, respectively.
While fundraising in the past year has been difficult for many Black founders, and many have been affected by the economic downturn, Black Web3 founders have found success amid a general downturn in the Web3 funding market. It is very important that we were able to raise a record amount of money for Investors who also seem somewhat optimistic about black founders, a change in attitude about how such entrepreneurs are generally viewed.