venturecapital

Even seasoned crypto investors aren't immune to the bear market blues. Fenbushi Capital, one of the industry's oldest and most respected venture capital firms, recently disclosed a $5.14 million loss from selling off a portion of its crypto holdings.
Portfolio Purge:
According to a recent financial report, Fenbushi offloaded assets in two tranches:
January 2023: The firm sold an undisclosed amount of crypto, resulting in a $1.4 million loss.March 2023: A larger sale followed, leading to a more substantial $3.74 million loss.
Strategic Move or Distress Signal?
While the exact reasons behind the sale remain under wraps, several factors could be at play:
Bear Market Pressures: The prolonged crypto winter has put a dent in portfolio valuations across the board, and Fenbushi may be feeling the heat.Liquidity Concerns: Venture capital firms need cash on hand to fund new investments and cover operational expenses. Selling crypto holdings could be a way to shore up liquidity during lean times.Portfolio Rebalancing: Fenbushi may be strategically adjusting its holdings, taking profits on some assets while doubling down on others they believe in for the long term.
Industry Impact:
Fenbushi's losses serve as a stark reminder that even the savviest investors are navigating a challenging market. The news could further dampen sentiment in an already skittish market, potentially leading to further sell-offs.
The Bigger Picture:
Despite the recent losses, Fenbushi remains a major player in the crypto VC space. The firm has a long track record of successful investments and continues to deploy capital into promising blockchain startups.
Key Takeaway:
Fenbushi's experience underscores the inherent volatility of the crypto market. Even seasoned investors can experience losses, highlighting the importance of risk management, diversification, and a long-term perspective.
#venturecapital #cryptowinter #PortfolioManagement #TheMute

#Web3
A recent report by Outlier Ventures, highlighted by PANews on August 31, 2025, reveals that Web3 startups raised an impressive $9.6 billion in venture capital during the second quarter of 2025. This figure marks the second-largest quarterly funding total on record, despite the number of deals dropping to 306—the lowest since mid-2023. This shift underscores a maturing Web3 market, where investors are prioritizing high-conviction, sustainability-focused projects over speculative, high-volume deals.
Key Trends in Web3 Funding
Consolidation of Capital: The report indicates a strategic pivot, with investors allocating larger sums to fewer, more established projects. The median deal size increased across all stages, reflecting a focus on durability and proven teams rather than broad, hype-driven investments.Series A Rebound: Series A funding saw a significant resurgence, with 27 deals totaling $420 million and a median round size of $17.6 million—the highest since 2022. This marks a recovery from the bear market slowdown.Seed Funding Growth: Seed rounds also grew, with a median size of $6.6 million, indicating strong investor confidence in early-stage Web3 ventures.Infrastructure Dominance: Infrastructure projects, including validator liquidity, rollups, and computing networks, captured the largest funding rounds, with median sizes ranging from $70 million to $112 million. These sectors are seen as critical for Web3’s long-term growth, outpacing consumer-facing sectors like marketplaces.
Investor Focus and Market Evolution
Outlier Ventures notes that capital is consolidating around projects that provide foundational infrastructure for Web3’s next phase of adoption. This shift away from speculative investments highlights a growing emphasis on scalability and resilience. Notably, private token sales raised $410 million across 15 deals, the strongest since 2021, while public token sales dropped 83% to $134 million, signaling reduced interest in retail-focused offerings.
The data suggests that Web3 venture capital is entering a phase of strategic refinement, with investors doubling down on infrastructure and high-potential teams to drive sustainable innovation. As the market evolves, Web3 startups are poised to play a pivotal role in shaping the decentralized future.
#Web3 #venturecapital #blockchain #CryptoFunding