The article discusses the current state of the cryptocurrency and blockchain industry, specifically in terms of venture capital funding. Here are some key points:
- Increased activity: After a slow year in 2023, the crypto and blockchain industry is seeing an uptick in activity, with many firms reporting a surge in deal flow.
- Funds raising capital: LPs (limited partners) who were hesitant to invest last year are now warming up to the space, leading to increased fundraising efforts by funds.
- Web3 growth potential: Felix believes that VC funding for web3 could reach $16.2 billion by the end of 2024, representing around 10% of global dollars raised.
- Capital expectations: Many firms expect to raise capital above the $10.18 billion figure seen in 2023, with estimates ranging from $10 billion to $20 billion.
- Comparison to previous years: The industry is expected to fall between the mania of 2021-2022 and the muted market of last year, with some firms accelerating deployments and fundraising efforts.
- Caveat on deployers of capital: Without large deployers of capital like FTX and Three Arrows Capital (which are no longer in business), it’s unclear how dollars deployed into crypto VC will get back to 2021-2022 levels.
Some quotes from the article that highlight the changing sentiment:
- "The industry moves on from FTX, LPs are also warming back up to the space."
- "I would not be surprised if things get frothier as those bigger market participants come back, crypto funds go back out to the market to reload on capital from LPs."
- "Last year, most funds were doing about one to two deals a month, or a few a quarter. That has dramatically changed."
Overall, the article suggests that the crypto and blockchain industry is experiencing a rebound in activity, with increased fundraising efforts and deal flow.
