![QoQ Change In Web3 Gaming Investments QoQ Change In Web3 Gaming Investments](/_ipx/loading_lazy&f_webp&w_667/https://storage.googleapis.com/members-portal-bucket/uploads/2023/04/10.png)
Web3 game funding continued its downward trend, with total funds invested falling 30% compared to the previous quarter, representing an 80% YoY drop.
However, when you add some color, it might not be as bad as it sounds.
👉The number of deals closed actually increased by 5% QoQ, demonstrating that there are still plenty of builders entering the space (e.g., CCP Games, Jungle, & Redemption Games).
👉Uncertain markets = more cautious investors = better due diligence. This leads to better quality projects being funded.
👉Institutional funding is a lagging indicator of growth, and many of these recent funding rounds were likely closed in Q4 2022 (i.e., when the markets got ugly).
![MoM Web3 Gaming Investments MoM Web3 Gaming Investments](/_ipx/loading_lazy&f_webp&w_667/https://storage.googleapis.com/members-portal-bucket/uploads/2023/04/9.png)
The number of deals and total funding amount dropped 47% and 19%, respectively, from last month. However, on a deal-to-deal basis, gaming projects were able to raise, on average, ~45% more compared to January’s metrics. Additionally, we have not dropped down to December 2022’s lows.
2023 is still set to be a year full of anticipated game launches, which, if proven relatively successful, will likely reignite the fire within both teams and investors.