Large VCs are sidelining smaller crypto investors, PwC crypto lead says

Large VCs are sidelining smaller crypto investors, PwC crypto lead says

As cryptocurrency continues to take over mainstream finance, formerly cautious investors across the globe are rethinking their stance of counting crypto as a bad investment. This change of heart has led to a higher market valuation of crypto businesses due to increased funding from goliath investors. 

Citing this trend, PricewaterhouseCoopers crypto leader Henri Arslanian claimed that larger players from venture capital, private equity and pension funds are outplaying smaller boutique firms and family offices from participating in the latest innovations around crypto.

Our top trading bots

Arslanian sided with smaller VC firms as he shared an example stating that a deal worth $10 million is now seeing “large VCs come in and put a bid in for a higher valuation.” He opined:

“This is happening a lot with very early-stage companies, say, $5 million to $20 million — the prices are being inflated.”

As the crypto ecosystem continues to redefine the future of the asset class, Arslanian highlighted the recently doubled volume of crypto mergers and acquisitions. He underscored how this year, crypto businesses were able to raise 2020’s M&A value of $3 billion in just three months. 

“If your minimum ticket size is around $50 million, there aren’t that many companies that have that status yet,” Arslanian explained, continuing, “If you’re a large pension fund and you decided to make a crypto allocation, there are no more than two dozen companies around the world that are investable, looking for capital and could absorb $100 million.”

Along similar lines, Cointelegraph reported on FTX’s recent record-breaking funding round of $900 million. The funding, which resulted in FTX’s valuation growing from $1.2 billion to $18 billion, saw the involvement of large VC firms including Softbank, Sequoia Capital, Coinbase Ventures, Multicoin, VanEck and Paul Tudor Jones. 

Related: Multiverse secures a $15M investment from Samsung Next, leading blockchain VCs

Cointelegraph also reported on investments from some of blockchain’s biggest VCs toward Multiverse Labs, a company built to fund early-stage blockchain and AI initiatives. Some of the prominent investors include Samsung Next, Huobi Ventures and Arrington XRP Capital.

The resultant valuation for Multiverse grew to $250 million, with a greater focus on engineering, research and marketing in addition to expansion across Europe and Southeast Asia.

Read on here Cointelegraph
Twitter launches crypto tipping for all users
Social media giant Twitter will be enabling cryptocurrency options to its tipping jar, allowing any user to pay through the platform.In a Thursday blog...
Additional compensation available for Cryptsy victims, court notice says
Last week, some former users of the now-defunct cryptocurrency exchange Cryptsy received a notice informing them of a new turn in the ongoing class settlement...
Miners have accumulated $600M worth of Bitcoin since Feb
Bitcoin miner are accumulating as the network hash rate continues to recover according to on-chain analytics provider Glassnode.In its Sept. 20 Week on...
Price analysis 9/3: BTC, ETH, ADA, BNB, XRP, SOL, DOGE, DOT, UNI, LINK
Bitcoin (BTC) finally broke above the $50,500 resistance and Ether (ETH) has risen above the $4,000 mark. This suggests that there is growing interest in...
DeFi TVL hits a record $157B as Ethereum competitors attract investors
Altcoins and DeFi tokens have been on a tear for the last two weeks  and as the end of August approaches many projects are seeing their tokens reach for...
BTC price holds $44K support in 'great sign' for Bitcoin bulls
Bitcoin (BTC) neared a critical breakout point on Aug. 19 as bulls sought to transform this week's downtrend into a battle for resistance.BTC/USD 1-hour...
Crypto miner Argo Blockchain goes ‘climate positive’ on greenhouse gas emissions
Cryptocurrency mining company Argo Blockchain announced Tuesday that it has reached an important milestone in its climate strategy, sending a strong signal...
Crypto population doubled to over 200M users since January, report says
Cryptocurrency adoption has seen an accelerated growth this year, with the global crypto population doubling since January, according to a new report.Major...
3 reasons why Bitcoin price has not been able to rally back above $40K
The ongoing story for the past couple of months in the cryptocurrency market has been confusion on whether Bitcoin (BTC) is destined for another leg down...
$31.5K Bitcoin price on track for lowest weekly close of 2021
Bitcoin (BTC) was on track to lose nearly $3,000 this week as a weekend of mixed price behavior came to an end.BTC/USD 1-hour candle chart (Bitstamp). Source:...
First look: Spike Lee's TV ad for crypto touts it as new money for a diverse world
Spike Lee’s new ad dubbed “The Currency of Currency” launched online today, and the two-minute spot depicts crypto as new money for a diverse world. The...
Gelato Network launches ‘G-UNI’ Uniswap v3 management token
While Uniswap’s highly-touted v3 has been racing to the top of TVL charts as of late, the need for active management has kept some retail participants out...
Balancer v2 and Gnosis' 'CowSwap' take aim at MEV with planned integration
Decentralized exchange Balancer and decentralized finance platform Gnosis have announced today a planned integration dubbed the Balancer-Gnosis-Protocol,...
Solana (SOL) hits new highs as DApps, DeFi and stablecoins join the network
The arrival of institutional investors and the rise of decentralized finance (DeFi) has been an incredible boon for the entire cryptocurrency sector but...
Michael Jordan, Will Smith join $305M funding round for NBA Top Shot maker Dapper Labs
NBA Top Shot maker Dapper Labs has secured about $305 million in new funding round from investors.According to a report by Business Insider on Tuesday,...