- Despite a crypto crash, VCs are backing Web3 startups in areas like NFTs and decentralized finance.
- We asked investors to name the most promising crypto and Web3 startups of 2022.
- VCs were asked to name startups in their portfolios and those they had no financial ties to.
There is a saying that some of the most successful businesses are born during tough economic times. In the midst of a crypto winter, Web3 proponents are considering this notion.
Although funding has slowed somewhat, investors continue to support crypto-powered startups aiming to transform sectors such as finance and digital commerce.
Among the most popular categories are collectibles known as NFTs, or non-fungible tokens; decentralized finance, or DeFi, which aims to provide financial services such as loans without having to go through a traditional bank; and tools for creating decentralized autonomous organizations, or DAOs, that use crypto tokens as tools to make group investment decisions.
Several other startups are focused on building the technology that enables the creation of Web3 applications.
Insider asked top investors from crypto-focused funds and more traditional companies to name the startups they think hold the most promise. Here are their picks.
Total estimated funding for each startup is based on data from PitchBook, unless otherwise noted.