If you believe in the future prominence of crypto, does a few years really make a difference?
The crypto markets may be red everywhere, but that hasn’t stopped many venture capitalists from investing in the space.
Valuations in the crypto industry are receding and the sector has become more investor-friendly. Many VCs see this period as a great opportunity and are shifting their crypto investment strategies to maximize the potential during the bear market. To enable that potential dealmaking, a number of major crypto-focused funds launched this week, including Multicoin Capital’s $430 million venture capital fund, its third and largest fund to date, and Protagonist’s $100 million fund, focused on crypto companies at an early stage.
Like the traditional tech world, crypto works in cycles, Craig Burel, a partner at the crypto-focused firm Reciprocal Ventures, told Marketingwithanoy. “During boom times you get wild experimental applications with new use cases out there or frills, and so many of them break or fall apart and go flat.”
But in bear markets?
“Infrastructure is being built to get those applications back on track, but in a successful way. That’s where we tend to focus and lean in during bear markets,” Burel added.