Singapore-based venture capital firm Foresight Ventures has recently launched the second phase of its accelerator program, targeting Web3 projects in a variety of emerging ecosystems. With an additional $10 million allocated towards this program, the company showcases its dedication to supporting the development of these projects. A notable increase from the first phase, which involved investments ranging from $50,000 to $200,000 in 30 selected companies, chosen projects for the second phase will now receive a fixed investment of $200,000.
Foresight Ventures is not only investing financially into these projects, but will also provide valuable mentorship and guidance by assigning up to three professionals to each project. Furthermore, an organized Demo Day will be arranged in order to demonstrate the progress and potential of the supported projects. The recent $10 million commitment brings Foresight Ventures’ total investment in the Web3 accelerator to a staggering $20 million, aimed at fueling the growth and development of Web3 projects in areas such as ZK systems, AI, machine learning, liquid staking derivatives, Bitcoin, and NFTs.
The company has also raised its VC portfolio AUM to over $400 million through collaborations with BitKeep and Bitget. One particular project backed by Foresight Ventures is a Web3 game called “HIM”, integrating AI and gaming within the Web3 ecosystem while targeting a female-oriented audience.
Despite Foresight Ventures’ impressive commitment to supporting Web3 projects, statistics show that Web3 startups are currently experiencing a decrease in venture capital funding attributed to a sluggish deal flow. Crunchbase data reveals an 82% year-on-year decline in Web3 VC funding, falling from $9.1 billion to just $1.7 billion, with Q4 2020 marked at $1.1 billion. Google Trends indicate that the term Web3, coined by Ethereum co-founder Gavin Wood in 2014, gained significant interest only in December 2021. Deal flow has also declined, with only 333 deals finalized in Q1, in contrast to over 500 deals in Q1 2022, and lower than the previous Q at 369 deals.
Out of the deals recorded, only two exceeded $100 million: Blockstream in January receiving $125 million from Kingsway Capital and Fulgur Ventures, marking the lowest figures since Q4 2020.
While the surge of interest in Web3 projects and ecosystems is evident, the current slump in VC funding raises questions about the sustainability and appeal of these projects. As Foresight Ventures and other investors continue to support the growth and development of Web3 technologies, the future of these projects largely remains uncertain.