The technological foundation of Web 3.0 has proven its resilience, and so have the builders shaping its future. Despite facing a prolonged crypto winter from 2020 to late 2023—the longest since Bitcoin’s inception—the industry remains steadfast. The downturn reached its peak in Q3 2023, with investments in crypto and blockchain dropping to $1.975 billion, the lowest since Q4 2020. This stark contrast from the $12 billion peak in Q1 2022 paints a picture of challenging times (Source: Coinpedia).

Yet, amidst these challenges, deal flows have remained steady, signaling resilience in the space.

Show Me the Money

Contrary to the declining short-term numbers, the Web 3.0 industry has seen significant investments since 2021, totaling over $94 billion (Source: Global Private Equity Report). This figure solely represents equity investments and excludes crypto tokens. The recent Bitcoin ETF approvals by the SEC, coupled with the entry of financial giants like Blackrock, have opened new pathways for mainstream financial institutions to embrace Web 3.0 opportunities.

Top-tier firms such as JPMorgan, Goldman Sachs, Google, BNY Mellon, General Atlantic, and Disney are now actively participating in the ecosystem. What once was a space dominated by early-stage Web3 accelerators and grants from Layer 1 and Layer 2 ecosystems has now attracted later-stage growth funds, crossover funds, and buyout funds—all without the safety net of comprehensive global regulatory frameworks.

New Sectors, Newer Founders

Despite past market turmoil, new sectors within Web 3.0 are thriving, with entrepreneurs venturing into areas that extend beyond the conventional realms. Some of the most promising sectors include:

Real World Asset Tokenization
Digital Identity (DID) and Self-Sovereign Identity (SSI)
Decentralized Social Media
Zero-Knowledge Proof
eSports & Gaming
Gen AI + Blockchain + Tokenization
Bitcoin Ordinals / BRC20

Traditional sectors like DeFi, NFTs, infrastructure, and security remain investor favorites, continually drawing significant attention.

A noteworthy trend is the influx of first-time entrepreneurs into the ecosystem. With a robust risk appetite and unwavering enthusiasm, these founders are driving innovation across Web3 startup incubators. The consistent deal flows are a testament to the sector's ongoing vitality.

Underwriting Risks

While the prospects of Web 3.0 are enticing, investors must approach the space with calculated caution. The convergence of cutting-edge tech and investment expertise is crucial for analyzing risks. According to Bain’s Global Private Equity Report, aligning Web 3.0 Token Launch advisory with traditional business acumen is vital for success. Factors like project viability, cost efficiency, founder credibility, and long-term scalability are central to sound investment decisions.

The appetite for risk varies among investors, but thorough due diligence will remain a cornerstone of effective participation in this rapidly evolving ecosystem.

The Shift Has Begun

The next 5–10 years will witness Web 3.0 becoming a pivotal theme in global investments. Despite funding slowdowns over the past two years, the sector exhibits remarkable resilience. Events like Bitcoin halving, Bitcoin ETFs, and the entry of prominent players promise to redefine the landscape.

For funds still hesitant, the time has come to explore opportunities in Web 3.0. Begin cautiously but prepare to deepen your involvement as the ecosystem matures. The evolving Web3 investors community will reward those who seize the moment.

Entrepreneurs, on the other hand, should refine their ideas, technology, and pitches. The field is becoming more discerning, requiring relentless innovation and strategic positioning. While challenges abound, the potential rewards are boundless.

About Pivot

Pivot is the best Web3 accelerator, founded by Anshul Dhir, a 3x Web 3.0 entrepreneur and mentor to over 50 startups. Pivot offers bespoke programs tailored to startups’ milestones rather than rigid curriculums. Supported by key industry players such as Polygon, Delphi Digital, and BNB Chain, Pivot provides unparalleled guidance through its Web3 accelerators and a robust network of Web3 investors.

Through its Web3 startup incubator and strategic Web 3.0 Token Launch advisory, Pivot is shaping the future of Web 3.0 entrepreneurship and investment.

Explore Pivot’s ecosystem on Website, Twitter, Telegram, LinkedIn, Blogs, YouTube, and Discord.

Web 3.0 is here to stay—so are the builders shaping its future. The time to act is now!

Web 3.0: A New Era for Investors and Entrepreneurs