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Web 3.0 Investor Market – India Calling
Web 3.0 Investor Market – India Calling

July 22, 2022

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As we continue to look through different aspects into the Web 3.0 landscape (Products & solutions, Talent covered in earlier blogs of the series), we now move our focus towards understanding the investors’ overview focusing on their interest in the Indian market and their sentiments when it comes to investing in Web 3.0 start-ups.

According to Pitchbook, funding across blockchain and cryptocurrency shot up, tripling from under $10 billion in 2020 to more than $30 billion in 2021. Further, globally, ~84% of companies globally are preparing for blockchain’s eventual adoption.

This clearly speaks of investor’s confidence in Web 3.0’s foundational technologies and the innovative solutions it will bring in.

Global investors and Indian Web3 start-ups

India’s ecosystem of 4 million developers, and a vast network of web3 community seem to have caught the attention of global investors.

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*VC investments in cryptocurrency-based gaming, eCommerce, and shopping start-ups

Although, blockchain has not been much practically easy to use, nor was it cost effective to scale, the technology has started to show early signs of changes where it can support volume applications at low transaction costs. Investors want to take an early advantage of this revolution to invest in the leaders of the technology. In 2021, international funds invested over $500 million in the Indian start-up and blockchain ecosystem which is 1,486% up from 2020. Further, In India, $143.3 million has been invested across 21 Web3 and crypto start-ups until this year, according to data shared by Tracxn. Of this, most of the deals were early-stage rounds, with the only exception of crypto exchange, CoinDCX, which raised a late-stage funding round.

Further, not only the international funds, but also Indian investors are looking at the Indian Web 3.0 start-up ecosystem as a great investment opportunity. For example, early-stage Indian VC firm Antler India, a unit of Singapore-based venture capital platform Antler, has pledged to in 25-30 start-ups in the blockchain and Web 3.0 space in the next 2-3 years.

While lawmakers are still exploring and making their way to get more clarity on the regulations, investors are betting big on the Indian talent and innovative start-ups. Yuji Kumagai, Principal at Akatsuki, Inc, which recently launched a $20-million Web3 fund focussed on Asian companies, stated: “Even though there is regulatory ambiguity, we feel there is a huge potential in the Indian market. We expect many great projects to emerge out of India in the next few years. Web2 has essentially been dominated by the West, and Asian companies have largely focussed on local innovation. But, with Web3, Asia has the chance to build global projects.”

Further, despite of the regulatory ambiguity and dropping trading volumes, global crypto and Web3 companies are also eyeing the opportunities within the Indian Web3 ecosystem. For example, Global companies such as Cointracker, Coinbase and Kassio recently made their way in India, to grab on the Web3 market opportunities present in India.

With the vast digitally skilled talent pool and innovative products and solutions which start-up ecosystem is developing, India should be playing a pivotal role in Web 3.0 development.

Sources:

Despite funding crunch, investors bullish on Web3 companies

The Irony Of Web3.0 Investors

Indian VC firms betting big on Web 3.0 startups

Web 3.0: A Seat at the Investor’s Roundtable


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