Startup investors flee the metaverse

January 16, 2024

Hi, Agen. Happy New Year? Not for employees at the nearly 30 companies that joined our Tech Layoffs tracker last week, when at least 4,000 U.S. tech workers lost their jobs at companies ranging from tech giants (ahem, Google, Amazon) to smaller startups that will shut down entirely. And despite all the buzz around Apple’s fancy new virtual reality headset, startup investors have been fleeing the metaverse, our data shows. On a more positive note, while it usually takes a couple of weeks after New Year’s Day for the funding market to heat up, last week already saw three nine-figure deals for U.S. startups top our 10 largest funding deals list.

🏃 Startup investors flee the metaverse

Almost no investors are backing fresh rounds for startups creating the next generation of virtual worlds, Crunchbase data shows. Investment around metaverse, virtual worlds and augmented reality themes hit a multiyear low in 2023, driven by declining support for consumer-focused startups.

Related Crunchbase Pro list: Metaverse, Virtual Reality, And Augmented Reality Funding, 2023

🏅 Top 10 funding deals: New year starts strong

Huge funding deals to U.S. startups last week were spread across a variety of sectors, including entertainment, cyber, gaming, health care and others. We even saw a well-known company that hasn’t raised cash for seven years lock up a big round.

🪓 Nearly 30 companies join Layoffs Tracker in one week

U.S. tech job cuts last week totaled more than 4,000 at close to 30 companies and ran the gamut from cuts at Big Tech companies to a slew of smaller startups cutting jobs or announcing total shutdowns or future plans to close up shop.

💸 Which fintech sectors are VCs bullish about in 2024?

Fintech — once the startup sector that drew more money than any other — is no longer the No. 1 investor favorite, but still drew billions of dollars in capital in 2023. We look at what happened with the sector in 2023 and hear from investors about what to expect this year.

Related Crunchbase Pro list: Funding To Financial Services Companies In 2023

🤑 A16z tops active investor ranks in slow year

Andreessen Horowitz reclaimed its frontrunner status among active startup investors in 2023, as firms such as Tiger Global Management and SoftBank Vision Fund retreated in a slow year for venture spending.

Get more with Crunchbase Enterprise

Find out more about Crunchbase’s prospecting software that enables your entire team to find the right companies, identify the right people, and connect with the decision-makers who can move deals forward – all in one solution.

BOOK A MEETING NOW