According to Cointelegraph: As crypto venture capital gradually recovers, investors are shifting their focus toward more liquid, growth-ready startup opportunities. While the prognosis for venture funds and startups seeking capital appears promising, industry insiders inform Cointelegraph that funding remains tighter than during the previous bull cycle.
Carlos Pereira, partner at BitKraft Ventures, suggests the capital isn't plentiful for venture capital deals, and a divergence between public and private markets is anticipated. This could indicate that while public markets such as stocks, bonds, and securities may continue to captivate investors, private markets like venture capital funds might witness a dip in open funding.
BitKraft, which fell short of its $240 million target by raising $220.6 million for its second token fund in 2023, plans to allocate the capital toward information technology and gaming sectors. Pereira cited gaming, a $330 billion market, as a strong segment, with a positive trend in web3 activities, contributing to Q4 2023's recovery.
Adam Struck, founder of VC firm Struck Capital, points out the additional challenges lying ahead, especially for early-stage ventures. He expects businesses with tested models, ready for expansion, to be preferred by venture funders. Struck also predicts a fruitful year for the gaming industry and the decentralized finance (DeFi) sphere as institutional capital moves on-chain.
Lolli, a crypto startup offering shoppers Bitcoin and cashback rewards, benefitted from Bitkraft Ventures' stronghold in an $8 million Series B round. CEO Alex Adelman advocates for startups to avoid excessive or prohibitively expensive funding, suggesting they strategize their 2024 funding only for the required amount to reach the next growth phase.