Cryptocurrency Exchange Bitget Reports 70% Quarterly Decrease in Web3 Fundraising in 2022, with Female Startups Receiving Only 6.3%
Cryptocurrency exchange Bitget has released a report detailing the trends in blockchain funding throughout 2022 and the first three quarters of 2023. The report highlights a significant decrease in fundraising for Web3 startups, as well as gender disparities in the venture capital (VC) ecosystem.
According to the report, blockchain startups received a total of $27.85 billion in funding between January 2022 and Q3 2023. However, there was a substantial 70% decrease in fundraising per quarter during that period. Female-led Web3 startups faced even more challenges, as they only attracted 6.34% of the total funding. This marks a significant 45.2% decline since 2022. Despite the overall downward trend, there was a slight increase from 8.3% in 2022 to 8.6% in 2023, indicating potential future growth for female startups.
The report identifies several factors contributing to the funding disparities between male and female startups. These factors include market trends, investor sentiment, and general biases in the VC ecosystem. Investor bias, which is prevalent in both traditional finance and cryptocurrency spaces, plays a major role in directing funds towards male creatives. Additionally, the market cycle and regulatory limitations have significantly impacted the inflow of investment into new companies.
The bearish market conditions that persisted throughout 2022 resulted in declining asset prices, investor sentiment, and low on-chain volume. The collapse of major players like the Terra Network and FTX, along with increased regulatory scrutiny, further hindered the industry. As a result, funding dropped by 61.6% in 2022, with the lowest quarterly figure of $1.97 billion, representing a 29% decline from earlier months in the year.
In terms of funding for female-led Web3 firms, the report reveals that they received only $1.77 billion out of the total funding. This gender bias not only limits opportunities for women but also hampers the broader adoption of cryptocurrencies in female-related fields within traditional finance.
Gracy Chen, Managing Director of Bitget, expressed the company’s dedication to challenging the current status quo and prioritizing talent as the primary driver of funding, regardless of gender. Chen emphasized the need for industry-wide change to create a more inclusive and equitable VC ecosystem.
Bitget’s report sheds light on the challenges faced by Web3 startups and the gender disparities within the blockchain funding landscape. While the overall funding for the sector has seen a significant decline, there are encouraging signs of increased support for female-led startups. However, it is clear that more efforts are needed to address biases and provide equal opportunities for all entrepreneurs in the blockchain space.
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