# Market ## **Target Market** The token economies that underpin many web3 projects can result in outsized returns compared to Web2 investments. Being more sector-specific, DeFi (decentralized finance) had a market cap of just $2 billion in 2020 and opened with a $160 billion market cap in 2022 — an 80-time growth in just two years. Many prominent investors and institutions are making the bold prediction that DeFi, which currently represents an immaterial percentage of the S\&P500 traditional finance market, could be worth 100 times more in just five years. ## **Market Traction** Venture capital firms invested $33 billion in crypto and blockchain startups in 2021 and are on pace to nearly double that in 2022. Here's why VCs are so enamored by Web3. According to a report by Venture Intelligence, crypto and Web3 startups have raised more than $1 billion in funding across 43 deals in just the first six months of 2022. Top deals included Polygon's $450 million fund raised by SoftBank, Tiger Global and Sequoia India in February, cryptocurrency exchange CoinDCX's $136 million fund raised in April and treasury management platform Coinshift's $15 million fund raised in May. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://vcx-capital.gitbook.io/vcx-capital/market.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.