In Q1, top VCs remained bullish on Web3, DeFi, and the metaverse
The Emerging Tech Indicator provides a quarterly overview of startups receiving seed and early-stage investments from a limited subset of VC funds. In the first quarter of 2022, our analysts tracked 227 deals that involved the top-performing 15 VC firms.
The report takes a closer look at five emerging market segments in Q1: Web3 & DeFi, fintech, biotech, data tech, and enterprise SaaS, which serve as an indicators of technologies that are likely to drive growth opportunities over the next several years.
Key takeaways
- Web3 & DeFi was the largest area of ETI investment for the third consecutive quarter, with $2.0 billion invested across 29 deals.
- Fintech companies secured $614.0 million in ETI investment across 23 deals in Q1, with roughly half that total collected by startups outside the US.
- The metaverse has emerged as a strong theme within Web3 & DeFi, as several ETI startups in the gaming and crypto industry incorporated the term as a key part of their branding.
- While Q1 VC activity has proven to be relatively resilient despite broader market turbulence, we expect Q2 data may show further retraction from the peak activity levels reported over Q4 2021 and Q1 2022.
Table of contents
| Introduction | 3 |
| Key takeaways | 4 |
| Deal activity | 5 |
| Areas of investment | 6 |
| ETI segment spotlights | 12 |
| Web3 & DeFi | 13 |
| Fintech | 17 |
| Biotech | 21 |
| Enterprise SaaS | 24 |
| Data tech | 28 |
| Other notable activity | 31 |
| Venture activity summary | 33 |
| Emerging tech indicator investor ranking | 36 |
