Investors in the startup scene have abandoned the metaverse.

Few people are currently dedicating significant free time to the metaverse, and there is minimal investor support for new startups focused on creating the next wave of virtual worlds. Recent data analysis on venture funding related to the metaverse, virtual worlds, and augmented reality reveals a multiyear low in 2023, largely driven by waning backing for consumer-focused startups. The decline is evident in both overall funding trends and specifically in U.S. metaverse-related investments. In 2023, the largest late-stage venture round in the space amounted to $82 million for Augmedics, a company specialising in augmented reality image guidance technology for surgery, which is more practical than recreational. Notably, there were no U.S. funding rounds of $100 million or more for consumer-facing virtual world development in 2023, as depicted in the six-year chart, indicating a clear downward trajectory.