Crypto startup funding rate has been on a steep decline — here's what 5 big crypto funding investors are saying about 2024.
In 2023, the crypto industry faced significant challenges regarding funding. The total amount of funding decreased by 68% from the previous year, dropping from $33.2 billion to $10.6 billion.
Amongst industry professionals, this sharp decline is a huge cause for concern sparking speculation about the future of funding for crypto startups and venture crypto funds.
Optimism Amidst Challenges: Insights from Leading Venture Capitalists
In a recent exclusive interview with The Block, prominent venture capitalists within the crypto sphere. He shed light on the outlook for 2024.
Despite the setbacks faced in 2023, these key players present a collective sentiment of caution yet optimism for the upcoming year.
-
Coinbase Ventures: Forecasting Global Growth Driven by Regulatory Clarity and Innovation
Coinbase Ventures, a crypto exchange stands poised with an "increasingly optimistic" stance regarding 2024. The firm identifies major factors expected to drive global growth, emphasizing the roles of regulatory clarity, the maturation of protocols, and a continual stream of innovative solutions.
-
Galaxy Ventures: Commitment to Early-Stage Projects Amidst Funding Challenges
Led by investor Mike Novogratz, Galaxy Ventures maintains a vigilant approach while remaining committed to nurturing early-stage projects.
Also, general Partner Mike Giampapa acknowledges prevailing challenges, hinting at potential funding constraints that might lead to flat or down rounds. Furthermore, the firm eyes industry consolidation through strategic mergers and acquisitions.
-
Animoca Brands: Bullish Outlook on Gaming, AI, and Web3 Components
Hong Kong-based Animoca Brands paints a "very optimistic" picture for funding in 2024. Co-founder Yat Siu points out a noticeable momentum shift in the crypto market rebound.
So, Siu expresses bullish sentiments specifically directed toward gaming and AI, particularly with the integration of web3 components.
-
HashKey Capital and Shima Capital: Anticipating Market Opportunities and Increased Investment
Asia-based HashKey Capital anticipates a "bullish market" in 2024, actively seeking new investment opportunities, especially in liquid investments.
Conversely, Shima Capital, an early-stage investor, maintains a stance of cautious optimism. The firm foresees increased investment in infrastructure, gaming, and tokenization verticals, recognizing the industry's ongoing quest for stability and direction.
-
Multicoin Capital and Polygon Ventures: Identifying Opportunities in AI Revolution and Web3 Financing
Multicoin Capital identifies a "huge opportunity" in the AI revolution and addresses the GPU shortage while expecting the emergence of new players in neobanks, DeFi, payment apps, and DEXs in 2024.
Polygon Ventures, on the other hand, foresees a positive shift in web3 financing, emphasizing the evolving dynamics of crypto funding.
Institutional Interest and Regulatory Approval: Catalysts for a Bull Run in 2024
Recent reports and expert analyses hint at an impending bull run in the crypto market for 2024. The primary drivers behind this anticipated surge include the sustained interest from institutional investors and the potential approval of a spot Bitcoin ETF by the SEC.
If realized, this approval is expected to pave the way for a substantial influx of capital into the crypto sphere.
So, while acknowledging the challenges of the past, venture capitalists remain focused and cautiously optimistic about the growth prospects of crypto funding in 2024.
Also, the collective sentiment among these industry leaders indicates a shared belief in the potential for growth and innovation within the crypto ecosystem.