In Indian start-up technology churn, generative AI gets edge over Web3

Raise $7.1 million in funding across eight deals until June 1

Generative AI, a now prominent AI use case, has stolen the deeptech spotlight owing to its universal adaptability across sectors, while Web3 has been pushed to the sidelines. This has also impacted investor sentiment.

Industry stakeholders Business Standard spoke to say investors are now taking a calibrated approach to the Web3 sector in the aftermath of multiple cryptocurrency collapses and prevailing regulatory uncertainties, amid an overall decline in private equity and venture-capital bets.

Web3 as an industry covers technologies such as decentralisation and token-based economies such as cryptocurrencies and non-fungible tokens.

Currently, there are 1,367 active blockchain start-ups in the country. Of these,