After the crypto winter nearly brought the industry to a halt, there is still a lot of hope thanks to the Luna crash, Celsius’ bankruptcy, and FTX founder Sam Bankman-arrest Fried on suspicion of fraud. Then there was the venture withdrawal during the financial crisis.
Web3 startups worldwide raised a record $29.2 billion in 2021. By 2022, the amount had decreased to $21.5 billion, although it was still significantly higher than the combined $4.8 billion and $4.2 billion that such businesses had made in 2020 and 2019, respectively.
Although many Black innovators and investors who spoke in interviews remain positive about the sector’s potential for the community and society at large, Black folks who invested in crypto were hit disproportionately hard throughout the winter. The economic correction from last year was actually essential.
Many Black founders found it difficult to raise money last year, and many of them were negatively affected by the downturn. However, it is quite striking that Black web3 founders were able to raise record amounts despite a general decline in the web3 fundraising market. It appears that investors are also generally positive about Black founders, which is a shift from how these businesspeople are typically viewed.
