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Web 3 funding: November 2020 in numbers

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Web 3 funding: November 2020 in numbers

December 2020

Posted by

Ana-Maria Yanakieva

Investment Manager

Ana began her journey in the venture capital industry over 3 years ago with the investment team in LAUNCHub Ventures (portfolio includes Taylor & Hart, Heresy, GoAvio, Fite). She worked on assessing opportunities in various industries including blockchain and DLT....read more

November continues a very strong trend for 2020. Markets are booming, fundraising is following. Continuing the tradition I am looking into the fundraising data for the second quarter of the year to get a comprehensive view of the state of Web 3. I am doing this every month to see how the true effect of COVID-19 unravels in the Web 3 world in near real time across 5 charts. See October 2020 numbers here.

Posted by Ana-Maria Yanakieva - December 2020

December 2020

Posted by

Ana-Maria Yanakieva

Investment Manager

Ana began her journey in the venture capital industry over 3 years ago with the investment team in LAUNCHub Ventures (portfolio includes Taylor & Hart, Heresy, GoAvio, Fite). She worked on assessing opportunities in various industries including blockchain and DLT....read more

November is solidifying the fundamentals with 61 deals and $357 million raised. 

Web 3 funding: November 2020 in numbers Outlier Ventures

Source: Pitchbook, Crunchbase and The Block

The median raise this month was $2.3 million across 18 different verticals. The majority of the deals were equity-based transactions. In the markets all eyes are still on Bitcoin with plenty of companies who raised equity rounds getting ready to issue their tokens before Christmas, before the Chinese New Year and in the spring. Loads of product development and traction is happening behind closed doors. Definitely very different fundamentals to 2017 whitepaper million dollar raises.

If you’re an investor (angel or institutional) and want to keep up with the latest on Base Camp cohorts and chance to gain early access to deals, sign up here.


45% of the deals were in DeFi & Fintech.

Web 3 funding: November 2020 in numbers Outlier Ventures

Source: Pitchbook, Crunchbase and The Block

The DeFi & Fintech companies that raised in November are spread across 13 niches. This time around Banking, Exchanges, Trading and Derivatives topped the chart with half of all DeFi deals. Insurance, compliance, risk management and payments are still going strong. We are still in the search of solutions for retail and institutional investors. At more than a few billions locked in DeFi, the tools are still geared towards the more experienced and savvy users. And while an entire suite of financial infrastructure for advanced users is being built a lot of entrepreneurs will be focusing on yield seeking novice users.

If you are a founder looking at the future of finance, drop me a message! 


Although DeFi & Fintech attracted 10% less than usual deals, it still attracted the majority of capital at $278 million committed. 

Web 3 funding: November 2020 in numbers Outlier Ventures

Source: Pitchbook, Crunchbase and The Block

This month we are seeing less companies attracting more capital testifying to the burgeoning market. 27 deals and $278 million in commitments primarily in seed stage companies with the mean raise above $2m means a lot of investors were on the sidelines for long enough they are now pulling the triggers and only expected this to grow in the medium term.


Media & NFTs, Healthcare, Data Economy and Compute are following strongly.

Web 3 funding: November 2020 in numbers Outlier Ventures

Source: Pitchbook, Crunchbase and The Block

The market is still relatively slow for the Metaverse. However, we’re starting to see the first signs of increased interest from professional investors. A lot are still “playing around” in a quest to grasp the concept while others are doubling down on it in their portfolios.

If you are a founder building in the Metaverse, drop me a message!

Very interesting to see Healthcare, Data Economy and Compute so close together this months. Apart from deep tech developments, some of the most interesting products in Healthcare are related to unlocking value from data – from insurance to telemedicine and diagnostics and prevention. Decentralised compute makes it all possible in a secure way coupled with privacy preserving tools.


The most common round for October was seed.

Web 3 funding: November 2020 in numbers Outlier Ventures

Source: Pitchbook, Crunchbase and The Block

Token sales are still not popping just yet. There is definitely a slowly growing appetite from investors of all levels of sophistication and many are preparing for token launches behind the scenes. I expect Q1 and Q2 to be very busy for token investors.

This being said on the equity side of things we are seeing some rather unusual deals for crypto – from PIPE to PE growth and LBOs. These were mostly executed by exchanges, trading platforms and banks.

Web 3 funding: November 2020 in numbers Outlier Ventures

Source: Pitchbook, Crunchbase and The Block


This time around North America is leading fundraising with $255m committed across 25 deals.

Europe remains fairly active in deal making but seeing much smaller rounds. While the median rounds are very similar with $3 million for Europe and $3.75 million for North America, there are some outliers bringing North America’s average to $10 million compared to $3.8 million for Europe. Asia is heating up with 10 deals and $21 million committed. Africa is seeing some action but nowhere near the Fintech levels the continent has recently experienced.

Web 3 funding: November 2020 in numbers Outlier Ventures

Source: Pitchbook, Crunchbase and The Block

 


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