Web3 means the next version of the internet. It uses technologies like blockchain, smart contracts, and cryptocurrencies to build apps without middlemen. People can control their data, identity, and money directly. Web3 includes things like decentralized finance (DeFi), NFTs (non-fungible tokens), DAOs (decentralized autonomous organizations), and tokenized assets.
This space promises more freedom and fairness for users. But many people still wonder if it’s real innovation or just empty hype. To answer that, let’s look at the latest data, funding trends, and success stories.
Web3 Funding in 2025
In the first half of 2025, Web3 startups raised more than $10 billion. This shows strong interest from investors. However, the kind of projects getting money has changed.
- Late-stage startups (more mature businesses) got most of the money. Big names like Aptos Labs raised hundreds of millions to improve blockchain infrastructure.
- Early-stage startups (new ideas) faced more challenges. Many of them couldn’t get enough support. In fact, around 70% of new Web3 startups fail within the first year.
The most popular areas in 2025 include:
- Blockchain gaming and metaverse: $2.5 billion raised.
- Layer-2 solutions (for faster and cheaper blockchain use): $2.6 billion.
- AI + Web3 projects: $1.8 billion.
- Tokenization of real-world assets: Over $2 billion, with 150% growth since last year.
This shows that investors now prefer useful and scalable ideas, not just fun or trendy ones.
Big Wins in the Web3 World
Some startups have done very well. They didn’t just raise money—they also attracted support from governments, banks, and big companies.
One example is Digital Asset, a company building systems to tokenize financial products like bonds. It raised $135 million from top financial institutions like Goldman Sachs and Citadel.
In India, the state of Telangana started using blockchain for real services, such as remote voting. This proves that Web3 can work in the real world and not just in crypto circles.
In Europe, a new venture capital firm called Tritemius Capital launched a €21 million fund just for Web3 startups. They want to invest in areas like cybersecurity, DeFi, and digital ownership.
Another Web3 startup, Dedge Security, raised €4 million to improve cybersecurity tools for decentralized apps. It wants to help protect blockchain systems from hacking and scams.
When Web3 Fails
Not all Web3 projects succeed. Some rise fast and fall even faster.
For example, RTFKT, a digital fashion and NFT brand owned by Nike, shut down in early 2025. It once looked like the future of virtual fashion, but it couldn’t build a stable business model.
There are many similar stories. Some projects launch with flashy marketing and hype, but they collapse once excitement fades. This makes investors and users more careful now.
The problem isn’t with Web3 itself. The problem lies in startups that chase trends instead of solving real problems.
What Makes a Web3 Startup Succeed?
Startups that focus on real-world problems now attract the most attention and money. These companies don’t just talk about decentralization—they make it useful.
Here are key things that help a Web3 startup grow:
1. Clear Utility
Startups must show how they help people, businesses, or governments. For example, if they tokenize real estate or bonds, they must explain how this improves trading or investing.
2. Strong Infrastructure
They need fast, secure, and user-friendly systems. That’s why layer-2 networks and blockchain infrastructure tools get huge investments.
3. Legal Clarity
Governments like those in India and Hong Kong now support blockchain trials and regulations. When laws are clear, startups feel safer and grow faster.
4. Institutional Support
When big banks and companies support Web3, it shows trust. This opens doors to partnerships and large-scale adoption.
Where Are the Risks?
Web3 still carries major risks. Many people jump in with high hopes but forget how early the industry still is.
- Most new startups fail. Around 7 out of 10 Web3 startups shut down within 12 months.
- Early-stage funding is drying up. Investors now choose mature, proven companies.
- Many ideas sound cool but don’t work. Projects like NFT fashion or meme coins often disappear fast.
- Rules differ everywhere. Some governments support Web3, while others stay silent or block it. Startups need to understand local laws before launching.
If founders ignore these issues, their startups won’t survive.
Advice for Founders and Investors
For Founders:
- Don’t focus on hype. Build tools that solve problems.
- Learn the law before building. Stay compliant.
- Focus on cybersecurity. Hacks and scams ruin trust.
- Partner with governments or large companies. It adds legitimacy.
For Investors:
- Skip quick wins. Look for solid infrastructure plays.
- Invest in real-world use cases like tokenization, DePIN (decentralized physical infrastructure), and Web3-AI fusion.
- Don’t follow trends blindly. Do deep research.
Final Thoughts: Is Web3 Real?
Web3 is both hype and opportunity. The hype comes from projects that don’t solve anything and crash quickly. But the opportunity is huge for startups that focus on real value, legal clarity, and long-term growth.
As of 2025, billions of dollars still flow into Web3. Governments are testing it. Big companies support it. And strong startups are building solid products that users need.
So, the truth depends on how you approach it. If you chase fame, Web3 may disappoint you. But if you build with care, patience, and purpose, Web3 can unlock a new kind of internet—and a new kind of startup success.
Also Read – Blockchain Use Cases for Startups