There is still hope after the crypto winter almost froze the sector: the fall of Luna, the loss of Celsius and the arrest of FTX founder Sam Bankman-Fried for fraudulent claims. Then there was a recession in the recession.
In 2021, web3 startups raised $29.2 billion worldwide. In 2022, that number drops to $21.5 billion — though that’s still far more than the combined $4.8 billion and $4.2 billion companies raised in 2020 and 2019, respectively.
Black people who have invested in cryptocurrencies have been hit hard over the winter, although many black founders and investors who spoke to TechCrunch remain optimistic about the potential of the platform for communities and society. in general. If anything, last year’s economic correction is needed, they told TechCrunch.
“The bubble had to pop,” said Simone Berry, co-founder of People of Crypto. “It was not sustainable and economic adjustment was needed. The recession took out bad actors who entered the space for a quick dollar. This has created an opportunity to break out of the hype cycle, clearing the way for development that will ensure sustainable, value-adding ecosystem growth. “
Pryce Adade-Yebesi, co-founder of Utopia Labs, agrees. “This period is a fair result for an era of speculation and grift,” he told TechCrunch. “This will be a good time to focus. The return to reality in solving the problems that spread around the world; It’s a big change in the speed of space.”
Funding for the founders of Black web3 has only increased, and the crypto winter was the most productive year. Crunchbase data shows that US Black web3 founders raised $60 million (out of a total of $11.9 billion awarded to all US web3 startups in 2022). This amount is much higher than the $16 million that founders received in 2021, during the year of crypto (US startup web3 earned $16.5 billion that year).
In 2017, they raised $11 million out of $1.03 billion, and in 2018, they raised $0 out of about $2.8 billion; note the thin red line that disappears in the chart below. In 2019 and 2020, Black web3 founders raised $2.5 million and $4.5 million of $2.4 billion and $3.2 billion respectively.
Fundraising has been difficult for many black founders in the past year, and many have been affected by the recession, although arguably they have been able to raise record amounts in the downturn in the funding market. bola web3 the founders of Black web3. It appears that investors are also, to some extent, enthusiastic about Black founders, a change in the way such entrepreneurs are perceived.
