Top Ten Web3 Companies to Invest in

Attempting to explain the concept of web3 to a digital newborn? It's akin to narrating the plot of "Inception" after two margaritas: mind-boggling, twisty-turny, and likely to leave you questioning reality. Not for the neurologically faint-hearted, allow me to guide you through the labyrinth of decentralized online wonder, notorious market downturns, and the promised digital land that leaves tech traditionalists weak at the Wi-Fi signal.

web3, contrary to popular startup jargon, isn't the latest Spider-Man film but a brand-new, user-centric iteration of the internet.  This next-level web is hailed as the champion of decentralization, conquering industries with the might of a thousand blockchains while occasionally tripping over its shoelaces—just like any budding superhero might.

Financial services, showing off as the go-to-guy on the block(chain), adopted these tech advancements in an impressive leap of faith. Yet, crashing through windows, capes fluttering, are the art world, the gaming galaxy, the real estate realm, and even carbon markets all embracing the wild world of web3.

So, what's their secret weapon in this firm grip on the future? Sit tight and buckle up: it's about to get techy.

Now, turning this world-changing tech into dollars—that's the trick. Web3 companies, acting as crypto solution providers and tapping into blockchain applications and the expansive crypto economy, have a few neat profit-making tricks up their sleeves.

Transaction fees are one such trick, with platforms like crypto exchanges charging a tiny payment—usually in digital currency—for performing certain actions like supporting smart contracts. It might seem like a small change, but gather enough of it, and suddenly, low transaction fees become a revenue stream trickling into a financial flood.

The next stop on the cash-flow express is subscription fees. Regular payments for continuous access to products and services such as online platforms offering cybersecurity and insurance are the name of the game. And remember, even in the digital world, advertising is king, so selling ads or marketing services on their platforms is another way web3 companies make that sweet, sweet coin.

Tangible or digital products like crypto collectibles? Why not both? Businesses exchange these for cryptocurrency payments, nudging along the crypto economy. Lastly, there's staking—users support decentralized networks by pledging, or "staking," their cryptocurrency, which generates revenue for private companies that provide third-party services, further solidifying the position of web3 companies in the blockchain ecosystem.

While the world’s leading companies are trying to break into the web3 space, many promising startups and web3 companies are already thriving.

From blockchain protocols to digital assets providers to custom software development services, you’ll find lots of innovation in the space. We’ve curated a list of companies that stand out from that lot in terms of valuations and revenue.

Let's talk business or, more like crypto-business. Coinbase Global, Inc. took the finance world by storm with its daring step into the cryptosphere and is now America's largest cryptocurrency exchange platform. Coinbase is the first crypto exchange to go public.

With quarterly volume reaching nearly alchemic heights of $145 billion and total assets totaling a not-too-shabby $130 billion, they've clearly got their financial affairs in order.

Yet, they're not just content with sitting on a digital mountain of gold. Always looking ahead, Coinbase has expanded into non-fungible tokens (NFTs), a buzzing new addition to the digital asset world. Based in San Francisco and operating in over 100 countries, with a substantial workforce in the thousands, Coinbase is a heavyweight champion in cryptocurrency.

Established in 2012 as a start-up in San Francisco and going public under the ticker symbol COIN in 2021, Coinbase Global, Inc.'s kingpin of exchanges has taken the crypto world by storm. From Bitcoin to Ethereum, they've been serving the demands of over 4,510 employees and millions of users globally.

And while dipping their toes in Indian waters in April 2022, they faced challenges and had to pull back due to regulations. Despite hailstorms of layoffs in June and January 2023, a trusty collaboration with Google Cloud and a fresh license to operate in Bermuda showed the resilience of this crypto giant, even while juggling jabs from SEC.

Even as one of the biggest publicly traded web3 stocks in the U.S., Coinbase has become synonymous with a borderless crypto world. While catering to retail and institutional crypto investors, this dominant character in the decentralized finance (DeFi) plot provided a revenue of $3.19 billion and assets totaling $89.7 billion in 2022.

Hit like a Mortal Kombat fatality with a net loss of $1.1 billion that year, Coinbase stood tall in the ring, ready for the next round.

Revenue: $163 Million

Business: web3 software development

ConsenSys is a blockchain technology company founded by Joseph Lubin in October 2014. Headquartered in New York City, the company employs over 500 people and focuses on developing decentralized software services and applications operating on the Ethereum blockchain.

The company is behind the Ethereum blockchain infrastructure and applications like MetaMask (an Ethereum wallet) and Infura (a blockchain node infrastructure service).

Throughout its history, ConsenSys has made notable moves and acquisitions. In October 2018, the company acquired Planetary Resources, an asteroid mining company. However, the company underwent a restructuring in December 2018, resulting in a 13% reduction in staff.

In February 2020, an additional 14% of staff were laid off. Despite these challenges, ConsenSys has made strategic moves, such as acquiring the banking blockchain platform Quorum from JPMorgan Chase & Co in August 2020.

ConsenSys has successfully raised significant funding. In November 2021, the company raised $200 million at a valuation of $3.2 billion from investors, including Animoca Brands, Coinbase Ventures, and HSBC. In March 2022, ConsenSys raised $450 million in a new funding round led by ParaFi Capital, with Microsoft, SoftBank, and Temasek also joining as new investors.

This U.S.-based company has shaped itself into a front-runner in web3 development by providing groundbreaking tools and services, making a great contribution to the decentralized internet.

Valuation: $13 billion

Business: Digital asset marketplace

Even if you’re a newbie in web3, chances are you’ve heard of OpenSea. For most users, OpenSea is the first point of contact with the world of NFTs and digital art. OpenSea has significantly contributed to web3 adoption by becoming the biggest marketplace for laymen to sell and purchase digital assets.

Opensea is valued at $13 billion, which is low considering its revenue multiples. The company has demonstrated strong financial performance and generated significant revenue in the past, with $571 million in revenue in 2022.

Despite concerns about the volatility of the NFT market, Opensea's valuation remains high due to high trading volumes of the crypto collectibles. It's worth noting that Coinbase, a well-known crypto exchange, has a more conservative revenue multiple than Opensea, suggesting that Opensea's valuation may be too high for Coinbase to acquire.

Opensea has raised $425.12 million in funding across six rounds, with its most recent funding round, a Series C, raising $300 million in January 2022. The company's valuation was $1.5 billion in July 2021. Opensea's financial performance and market valuation are closely monitored by the dynamics of the NFT market.

Revenue: Over $20 billion (2021)

Business: Crypto exchange

Binance is a prominent blockchain and crypto asset exchange platform with significant success in the digital asset industry. With its diverse range of services and products, Binance has played an essential part in facilitating crypto investing.

Binance’s Research division provides institutional-grade analysis, unbiased information, and in-depth insights to industry participants. Their recent release of the Full-Year Review 2022 & Themes for 2023 report demonstrates their commitment to delivering comprehensive analysis and staying at the forefront of crypto.

Binance's dedication to providing objective and independent analysis has contributed to its overall success in the industry. Binance has demonstrated tenfold growth over the past two years. This growth is impressive, considering the downturn in the crypto market and the decrease in trading volumes towards the end of 2022.

The CEO of Binance, Changpeng Zhao, has expressed a commitment to continue building and leading by example, anticipating that innovation in product utilization will drive the next bull market.

As the biggest digital asset exchange by volume, Binance has seen significant success in its valuation. The company's VC arm, Binance Labs, currently holds a portfolio valued at approximately $9 billion, which has yielded impressive returns of over 10x. This valuation results from Binance's strategic focus on mergers and acquisitions (M&A) and venture capital (VC) deals and its belief in the potential for growth and disruption facilitated by web3 and blockchain technology.

With a diverse portfolio of over 200 companies across different continents and incubation programs to support startups, Binance continues to expand its geographical reach and customer base.

Valuation: $1.9 billion (2021)

Business: Crypto exchange

Coinswitch Kuber is a prominent web3 company in cryptocurrency trading and investment. It has gained popularity among Indian users, with a user base of over 19 million individuals. The platform positions itself as India's simplest crypto app. It offers various features, such as the Crypto Rupee Index (CRE8), a systematic investment plan (SIP), and the ability to buy crypto monthly using SIP.

With a user-friendly interface, low entry points, and support for popular cryptocurrencies, Coinswitch Kuber caters to many users. The platform has features like limit orders and price alerts to update users on their investments.

Although specific information about the company's revenues and valuation isn’t available, its significant user base and funding rounds indicate the potential for substantial financial success.

Coinswitch Kuber's $1.91 billion valuation (as of October 6, 2021) indicates that it's a highly valued company in the web3 space. While recent revenue numbers aren’t available, the platform's popularity among Indian users and its large user base suggest it generates significant revenue.

Revenue: $41.2 Million

Business: web3 software

Brave Software, Inc. is changing the game of Internet browsing by centering its focus on privacy. The company offers users a unique reward system through its Basic Attention Token (BAT) program, enhancing content creators' experiences.

Brave Software, Inc is closely related to the blockchain ecosystem as it aligns with the web3 philosophy of decentralization and privacy. The company focuses on providing a browsing experience that prioritizes user privacy by blocking privacy-invading ads and trackers by default.

Brave browser offers features like built-in IPFS integration, onion routing with Tor, and custom filter lists to enhance security. Additionally, they have a browser-native wallet for crypto assets, further integrating web3 technologies into their platform.

The primary revenue driver of Brave Software, Inc is its Brave Ads platform. They offer various ad formats and collaborate with companies like Verizon and Dentsu for successful advertising campaigns. Although specific revenue figures aren’t mentioned, their search engine Brave Search has experienced significant growth with over 6.5 billion annualized searches.

Revenue: $499 million (2022)

NYSE Ticker: MSTR

Business: Business intelligence software

MicroStrategy has been a stalwart in the tech consulting sphere, and though not explicitly a web3 company, they have cemented their foothold in the future by investing massively in Bitcoin. By the end of 2021, the company had acquired nearly 125,000 bitcoins.

MicroStrategy is a software company based in Virginia specializing in business intelligence software and online analytical processing. Established in 1989, the company has gained attention for its link with cryptocurrency and web3 technologies. MicroStrategy holds a significant amount of Bitcoin as part of its corporate treasury strategy, making it one of the largest institutional cryptocurrency holders.

Michael J. Saylor, board member and former CEO of the software consultancy firm, has been a vocal advocate for Bitcoin, stating that it is a reliable store of value. The company's decision to invest in Bitcoin has increased its valuation and attracted attention from other investors and institutions seeking to diversify their portfolios.

MicroStrategy's significant crypto holdings, particularly bitcoin, have contributed to its valuation and attracted attention from investors. With its focus on business intelligence software and online analytical processing, MicroStrategy continues to be a player in the evolving web3 space.

MicroStrategy has weathered economic upheavals and trends, and its decision to invest in bitcoin shows its adaptability and potential for higher rewards.

Revenue: $26.97 billion

NYSE Ticker: NVDA

Business: Computer hardware and software

When discussing web3 companies, two prominent names that can’t be ignored are Nvidia and Advanced Micro Devices (AMD). These companies have witnessed significant success in the crypto industry, with Nvidia's graphics processing units (GPUs) being utilized by crypto miners to support blockchain operations.

However, Nvidia's influence extends beyond gaming and crypto mining, as it boasts diverse technologies, including its deep learning division. Deep learning, a subset of artificial intelligence and machine learning, utilizes multi-layered artificial neural networks to achieve remarkable accuracy in various tasks.

While some skeptics raise concerns about the potential negative impact of Nvidia's deep learning initiatives, there is also a positive implication for web3 stocks, as the company's technology can replace centralized intermediaries, ultimately liberating the internet.

Revenue: $1.39 billion

NYSE Ticker: U

Business: Video game software development

Unity Software Inc. is revolutionizing the world of real-time content creation and immersive experiences while positioning itself at the forefront of the Web 3.0 revolution. With its licensed game engine and various software solutions, Unity empowers developers, artists, engineers, and architects to create interactive 2D and 3D content across various devices.

The company's impressive financial performance, as showcased in its Q3 2022 results, underscores its potential for profitability and positive cash flow generation. Unity's growth trajectory is evident, with a revenue of $322.9 million and Create Solutions contributing $171 million.

Unity's recent merger with ironSource has fortified its position in the mobile app community, addressing challenges in the ad market and setting the stage for future success.

As the metaverse gains momentum, Unity's platform is poised to capture the vast potential of web 3.0, with projections suggesting the market could exceed $800 billion by 2028. For any investor seeking to capitalize on the transformative power of the metaverse and bolster their portfolio, Unity Software is an enticing opportunity to consider.

In conclusion, investing can be a wild ride, especially for top web3 companies. With blockchain ecosystems supporting digital assets, businesses pioneering smart contracts, and crypto solution providers transforming the crypto exchange landscape, web3 firms are reshaping our economic and social fabric.

From Silicon Valley-based companies to the global offices of tech giants, a new era is unfolding where multiple blockchains, token ecosystems, and web APIs integrate to enhance hybrid systems. Building scalable, user-friendly applications and tapping into off-chain data sources for reliable market intelligence are among their groundbreaking solutions. 

Whether you're a seasoned crypto investor or a newcomer to the cryptocurrency space, navigating web3's revolutionary strides offers exciting opportunities to participate in shaping our digital future.