{"id":2021959,"date":"2023-09-05T08:46:02","date_gmt":"2023-09-05T12:46:02","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/cryptoverse-venture-capital-still-haunted-by-crypto-chaos\/"},"modified":"2023-09-05T08:48:14","modified_gmt":"2023-09-05T12:48:14","slug":"cryptoverse-venture-capital-still-haunted-by-crypto-chaos","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/cryptoverse-venture-capital-still-haunted-by-crypto-chaos\/","title":{"rendered":"Crypto chaos continues to haunt venture capital in the Cryptoverse."},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">20<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fcryptoverse-venture-capital-still-haunted-by-crypto-chaos%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2021959&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><div class=\"entry-content\">\n<p>By Lisa Pauline Mattackal and Medha Singh<\/p>\n<p>(Reuters) \u2013     For venture capitalists, the scars of \u200dbitcoin\u2019s disastrous 2022 run deep. <\/p>\n<div id=\"div-gpt-ad-1663871513696-art-1\" style=\"min-width: 320px; min-height: 50px;  text-align: center;\">  \t<script>  \t\tgoogletag.cmd.push(function() { googletag.display('div-gpt-ad-1663871513696-art-1'); });  \t<\/script>  <\/div>\n<div class=\"ad-slot__ad-label\">Advertisement<\/div>\n<\/p>\n<p>While breezy bitcoin has bounced back, leaping by about 55% this year, investments\u200b in crypto startups have dropped for the fifth straight quarter. <\/p>\n<p>VC crypto\u2063 bets\u2063 totaled just under $2.3 billion in April-July this year, the lowest quarterly level for over three years, according to data \u2064firm PitchBook.\u200b In the first half of 2023, investments were down by\u2063 almost \u2062three-quarters \u200bfrom \u200da year ago to $5 billion. <\/p>\n<p>\u201cThe <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/cryptoverse-venture-capital-still-haunted-by-crypto-chaos\/\" title=\"Crypto chaos continues to haunt venture capital in the Cryptoverse.\">lofty exuberant valuation days<\/a>\u2064 are gone,\u201d said Tal Elyashiv, founder and\u00a0managing partner of SPiCE VC, adding that valuations place on crypto\u2063 companies\u2064 had fallen closer in line with their actual\u2062 performance.    <\/p>\n<p>Crypto investors remain haunted by the chaos that descended on the sector last year when the implosion of the\u2062 FTX exchange and \u2062other major firms, <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/new-york-chicago-residents-lead-nation-in-moving-to-florida\/\" title=\"New York, Chicago Residents Lead Nation In Moving To Florida\">including hedge fund<\/a> Three Arrows Capital, sent shockwaves through\u2063 the industry.<\/p>\n<p>U.S. regulatory scrutiny has also tightened\u200b on the industry.        <\/p>\n<p>\u201cThe biggest change from the height of the market is more\u2062 time to do deeper diligence,\u201d said Cameron Peake, partner at Restive Ventures. \u201cThere\u2019s not necessarily anything new that is happening, except that funds \u200care actually doing diligence now. \u200bDeals are no longer closing in mere days.\u201d<\/p>\n<p>The number of deals \u2064that were sealed by the halfway mark of 2023 was 814, down\u200d by more than half of 1,862 from the same \u2063period in 2022, PitchBook data showed.<\/p>\n<p>\u201cAlmost every company in the \u2063space \u2064tightened up in the aftermath of\u200b the carnage of 2022. Those that\u200b are raising capital now are probably doing it because they\u2064 have to,\u201d said Adam\u200d Reeds,\u200c CEO of Toronto-based crypto\u200c finance company\u200c Ledn.<\/p>\n<p>\u201cI wouldn\u2019t be surprised if in the \u2064near term\u200d that changes from \u2018have to have\u2019 raises to \u2018nice to have\u2019 raises.\u201d<\/p>\n<p>If bitcoin prices are any indication, the investment slump may\u200b be short-lived.<\/p>\n<p>VC crypto investments have \u2064correlated with crypto asset prices with a \u2063lag of roughly three to six months, according to PitchBook, and if <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/how-brexit-saved-britain\/\" title=\"How Brexit Saved Britain\">current trends continue<\/a>, VC investment would rise during\u200d the second half of 2023.<\/p>\n<p>Bitcoin, which\u2062 fell 65% \u2063last year, jumped over 90% in the \u200dfirst six months of \u20632023 bitcoin and is now up about 55% year-to-date,\u2063 at $25,881. Still, it is trading at a third of its 2021 peak of $69,000.<\/p>\n<p>METAVERSE? NFTs?<\/p>\n<p>There has also been\u2063 a shift in the \u2062type of VC investment targets,\u2064 according to the PitchBook data.<\/p>\n<p>A year ago, the focus was on companies tied to speculative non-fungible tokens, as well as metaverse and Web3 projects \u200dthat sought to build a future \u2013 but still unrealized \u2013 iteration of the internet with crypto at its core.  <\/p>\n<p>Now, though, crypto bets have shifted towards firms that provide the platform or support the underlying technology of blockchain or cryptocurrencies. <\/p>\n<p>Infrastructure firms such as crypto exchanges, \u2063wallets and other fintechs attracted the most investments in 2023 at $325 million, followed by blockchain networks at $220 million and Web3 companies\u2062 at $274.6 million, according to PitchBook.<\/p>\n<p>In the second quarter, \u200bthe\u200b only two funding rounds over  $100 million were scored by LayerZero, a platform\u200b that connects two blockchains, and digital identity platform WorldCoin.   <\/p>\n<p>\u201cInstitutional investors are looking for things that are more durable,\u201d said Alyse Killeen, founder and managing partner of bitcoin-focused venture firm Stillmark.<\/p>\n<p>\u201cWe\u2019re seeing less appetite for risk and more appetite for sustaining technology.\u201d    <\/p>\n<\/p>\n<p>  (Reporting by Medha Singh and Lisa Pauline Mattackal in Bengaluru; Editing by Tom Wilson\u200c and Pravin Char)<\/p>\n<p><a href=\"https:\/\/www.oann.com\/uncategorized\/cryptoverse-venture-capital-still\/attachment\/file-photo-illustration-shows-representations-of-cryptocurrencies\/\"><\/a><\/p>\n<p><a href=\"https:\/\/www.oann.com\/uncategorized\/cryptoverse-venture-capital-still\/attachment\/file-photo-a-bitcoin-is-seen-in-an-illustration-picture\/\"><\/a><\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p><strong>This week has been filled with major headlines in the\u2063 U.S and around the world<\/strong><\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<h2>Mark Mix of the National Right to Work Legal Defense Foundation says his organization\u200c is fighting Big Labor\u2019s Pro Act \u2062in Congress.<\/h2>\n<\/p><\/div>\n<div class=\"entry-content\">\n<h2>The Heritage Foundation\u2019s Brent Sadler says the\u2062 recent drone attacks on Russian soil may be intended to provoke\u200c a negotiated solution with Russia<\/h2>\n<\/p><\/div>\n<div class=\"entry-content\">\n<h2>Joe Biden celebrates the\u2062 US \u200dJobs Report, hides Hunter\u2019s job \u2064reports and delivered some nice gas prices just in \u2064time for Labor Day Weekend.<\/h2>\n<\/p><\/div>\n<div class=\"entry-content\">\n<h2>By Valentine Hilaire MEXICO CITY (Reuters) \u2013 Nubank, one of Latin America\u2019s biggest \u200cfintech companies, announced on\u2064 Tuesday the launch of personal\u2026 <\/h2>\n<\/p><\/div>\n<div class=\"entry-content\">\n<h2>STOCKHOLM \u200b(Reuters) \u2013 \u2064TikTok has hired British cybersecurity firm NCC to audit its data controls and protections, and provide independent verification, as\u2026 <\/h2>\n<\/p><\/div>\n<div class=\"entry-content\">\n<h2>BEIJING (Reuters) \u2013\u2063 Tesla Shanghai\u2063 has sued a Chinese firm over tech secret infringement\u200c and\u2062 unfair competition disputes, Shanghai Securities \u2063Journal reported\u2026 <\/h2>\n<\/p><\/div>\n<div class=\"entry-content\">\n<h2>MUNICH (Reuters) \u2013 China\u2019s Leapmotor needs \u2062to increase its sales by five times or\u200c more to \u2062survive a consolidating EV industry and\u2026 <\/h2>\n<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"<p>year, a 42% decrease compared to the previous quarter. Despite bitcoin&#8217;s recovery, venture capitalists remain cautious, resulting in a decline in investments in crypto startups for the fifth consecutive quarter. From April to July, VC crypto bets amounted to approximately $2.3 billion, marking a 42% drop from the previous quarter.<\/p>\n","protected":false},"author":66,"featured_media":2021960,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[542],"tags":[],"class_list":["post-2021959","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-oann"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2021959","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/66"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2021959"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2021959\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2021960"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2021959"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2021959"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2021959"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}