European Web3 startups attracted a record $5.7 billion in 2022

According to a report by RockawayX, European Web3-startups in 2022 attracted a record $5.7 billion in venture funding.

For a dive into the data, and actionable insights & investment signal, be sure to read the full research.https://t.co/JLC8F4Weoj

— RockawayX (@Rockaway_X) March 22, 2023

For comparison, in 2021 this figure stood at $5 billion.

The investment cycle followed global trends, peaking in the second quarter of 2022 and contracting sharply in the first quarter of 2023.

Experts note that the worse the market conditions, the more investors get involved.

“There are already many crypto startups in Europe and the best ecosystem for their development. If US capital concentrates in Europe, local companies will be able to attract funding at late stages,” said Viktor Fischer, CEO of RockawayX.

The fastest-growing categories were developer tools, scaling products, and layer-1 networks.

The largest fundraising rounds were:

• Copper — $181m;
• SEBA Bank — $120m;
• Safe — $100m;
• Aztec — $100m;
• BSB Group — $60m;
• Celestia — $55m.

Early 2023, European investments fell sharply. In January, venture capital inflows declined by almost 91% compared with the same month a year earlier.

Investors also started shying away from centralized projects, especially after the collapse of FTX. Instead they favour early-stage Web3 investments, including the segment DEX.

Earlier, between 11 and 17 March 2023, crypto funds recorded outflows of $95m after a record $255m the week before.