What’s the deal with Web3 funding?

July 25, 2024

Hi, Agen. Startups in the Web3 space are starting to see some funding again, albeit not at historical highs. That’s especially remarkable considering last year’s investment crater following all the drama in the space. Plus, Microsoft’s AI regulatory dance steps continue while legal tech’s adoption of artificial intelligence provides a funding boom for the sector. Finally, a San Francisco-based space tech startup shoots for the moon with a fresh $200 million round.

💵 Web3 funding starting to steady

It’s been a bumpy road for Web3 startups the last year-plus. However, for the second consecutive quarter startups saw a slight increase in the amount of cash they raised — including a few big rounds.

Related Crunchbase Pro list: Funding To VC-Backed Web3 Startups

🎠 Eye On AI: Microsoft’s regulation merry-go-round

This week’s column looks at Microsoft’s failing efforts to avoid more scrutiny involving its AI dealings, and legal tech’s funding explosion thanks to AI.

Related Crunchbase Pro list: Legal Tech Funding

🚀 Space startup Astranis blasts off with new $200M round

Satellite developer Astranis raised a fresh $200 million round to build out its Omega satellite program. The San Francisco-based startup, which develops small broadband communications satellites for telecoms, is just the latest space startup to raise big cash.

Related Crunchbase Pro list: Space Tech Funding

👀 Some trends to watch — everything from AI to debt financing

So far, 2024 has resembled 2023 a lot when it comes to startups and venture capital. AI is still the dominating talk, funding is rocky and the IPO window is still only a bit ajar. The Crunchbase news staff tells you what to expect in the second half of the year.

📊 The state of startups in 7 charts

Two years into a venture funding slowdown, a lift from mega-rounds and AI funding signaled a stronger quarter in Q2. And there are signs that active venture investors, who backed off from the peak volume of 2021, are picking up the pace a little. However, despite some good signals the overall outlook from the venture markets has not shifted.

🎉 Who could be next to IPO?

Despite some predictions that the IPO market would open up this year, it’s continued to be sluggish when it comes to big names going public. Sure, some have gone out, such as content platform Reddit and chip startup Astera Labs, but it’s just been a trickle. If the second half is better, here’s our best predictions as to who could go out to the public market.