On 27 May, former Twitter India managing director Manish Maheshwari left his less than six-month-old metaverse-themed startup. Maheshwari, who co-founded the company called Invact Metaversity this February, had differences with another co-founder and investors about the path the startup would take.
But while the Invact story has been publicised widely, the funding winter in the startup space is catching up with metaverse startups faster than most other sectors.
Mint spoke to another Delhi-based co-founder who left his metaverse-themed firm last month after differences of opinion with another co-founder and chief investor. In that case, the metaverse firm was made part of a bigger events platform, according to the person.
Metaverse firms, which have been looking to capitalise on the web3 craze since last October, have started losing investors’ mindspace. According to founders, venture capital firms and analysts, the industry is starting to look at metaverse startups as risky investments, and therefore, don’t want to invest in them given the current funding squeeze, triggered by global inflation and an impending recession.