Venture capitalists flock to blockchain firms in third quarter

Decentralized finance (DeFi) and Web3 were the primary targets of early-stage startup funding from some of the top private investors in the third quarter, research firm Pitchbook said on Tuesday, even as overall venture capital investments declined.

Web3 – a term used to describe a potential next phase of the internet – firms that were focused on decentralized software projects as well as blockchain-based products and services drew the most capital with $879 million invested across 24 deals during the quarter, Pitchbook’s Emerging Tech Indicator report showed.