Close Menu
TechBrunchTechBrunch
  • Home
  • AI
  • Apps
  • Crypto
  • Security
  • Startups
  • TechCrunch
  • Venture

Subscribe to Updates

Subscribe to our newsletter and never miss our latest news

Subscribe my Newsletter for New Posts & tips Let's stay updated!

What's Hot

Automaker web portal security flaws

August 11, 2025

After researchers masked prolific SMS scammers, new operations emerged as a result

August 10, 2025

Simple little apps that can be replaced by RIP, Microsoft lenses, and AI

August 8, 2025
Facebook X (Twitter) Instagram
TechBrunchTechBrunch
  • Home
  • AI

    OpenAI seeks to extend human lifespans with the help of longevity startups

    January 17, 2025

    Farewell to the $200 million woolly mammoth and TikTok

    January 17, 2025

    Nord Security founder launches Nexos.ai to help enterprises move AI projects from pilot to production

    January 17, 2025

    Data proves it remains difficult for startups to raise capital, even though VCs invested $75 billion in the fourth quarter

    January 16, 2025

    Apple suspends AI notification summaries for news after generating false alerts

    January 16, 2025
  • Apps

    Simple little apps that can be replaced by RIP, Microsoft lenses, and AI

    August 8, 2025

    How to use Instagram maps to protect your privacy

    August 8, 2025

    Pinterest CEO says agent shopping is still a long way to go

    August 8, 2025

    OpenVibe combines news and social media in one app

    August 8, 2025

    How to use Instagram maps and how to set your location sharing preferences

    August 7, 2025
  • Crypto

    North Korean spies pretending to be remote workers have invaded hundreds of businesses, CloudStrike says

    August 4, 2025

    Telegram's Crypto Wallet will be released in the US

    July 22, 2025

    Indian Crypto ExchangeCoindCX confirms $44 million stolen during hack

    July 21, 2025

    North Korean hackers blamed record-breaking spikes in 2025

    July 17, 2025

    Bitcoin surpasses $118K at the second highest high in 24 hours

    July 11, 2025
  • Security

    Automaker web portal security flaws

    August 11, 2025

    After researchers masked prolific SMS scammers, new operations emerged as a result

    August 10, 2025

    Data breaches at French telecom giant Bouigs impact millions of customers

    August 7, 2025

    Rivalry apps for men leak user personal data and driver's license

    August 6, 2025

    Citizen LaBody Lecter warns the cyber industry about an authoritarian descent in the US

    August 6, 2025
  • Startups

    7 days left: Founders and VCs save over $300 on all stage passes

    March 24, 2025

    AI chip startup Furiosaai reportedly rejecting $800 million acquisition offer from Meta

    March 24, 2025

    20 Hottest Open Source Startups of 2024

    March 22, 2025

    Andrill may build a weapons factory in the UK

    March 21, 2025

    Startup Weekly: Wiz bets paid off at M&A Rich Week

    March 21, 2025
  • TechCrunch

    OpenSea takes a long-term view with a focus on UX despite NFT sales remaining low

    February 8, 2024

    AI will save software companies' growth dreams

    February 8, 2024

    B2B and B2C are not about who buys, but how you sell

    February 5, 2024

    It's time for venture capital to break away from fast fashion

    February 3, 2024

    a16z's Chris Dixon believes it's time to focus on blockchain use cases rather than speculation

    February 2, 2024
  • Venture

    Book an exhibition table before competitors make it 2025

    August 8, 2025

    What Founders Need to Know Before Choosing an Exit in 2025

    August 8, 2025

    High cost and thin margins threaten AI coding startups

    August 7, 2025

    Elad Gil will take the stage in October's 2025 destruction

    August 7, 2025

    Learn how to raise seed rounds from top VCS in 2025

    August 6, 2025
TechBrunchTechBrunch

Cryptocurrency exits remain low, but investors remain unfazed

TechBrunchBy TechBrunchFebruary 15, 20244 Mins Read
Facebook Twitter Pinterest Telegram LinkedIn Tumblr WhatsApp Email
Share
Facebook Twitter LinkedIn Pinterest Telegram Email


The global venture capital market has endured limited exits for an extended period of time. The IPO market remains frozen, as startups continue to go private for an extended period of time, M&A activity is quietly taking place due in part to increased regulatory oversight. This means that many historic venture deals are slowly rotting away from an IRR perspective.

The crypto market is no exception, but some investors in this space remain unfazed. New data from PitchBook’s Q4 2023 Crypto Report reveals that if the large startup market is suffering from an exit drought, crypto startups may be drying up even further.

The lack of exit volume and value of crypto startups may be related to the decline in total venture investment in emerging Web3 companies. If liquidity is low, the outlook for investment returns may be bleak. The good news for crypto founders is that venture capital investments increased by 2.5% in the fourth quarter of 2023 compared to the third quarter, even though they are less likely to sell their companies. , trading volume was reduced at a similar rate.

The fourth quarter was consistent with “low levels of activity seen throughout 2023,” the report said. Additionally, there were only 12 evictions during this period, the lowest number since Q4 2020.

Increased trading volumes despite limited exits means there is a surprising level of optimism among crypto investors. But the increase in investment doesn't shock us, as crypto prices are rising, major regulatory hurdles have been cleared, and there are other positive signals that cast a slightly warmer light on Web3 in general.

But exit problems remain, and recent investment totals are abysmal. Annual data shows that crypto-focused venture capital exits were worth $1.2 billion in 2012, but only $500 million in 2019-2020. In 2022-2023, the numbers were $1.4 billion and $1 billion. The outlier was 2021, when the exit value of cryptocurrencies was worth $88 billion.

Why the big difference? It's not difficult to parse. 2021 was active in exits across many startup categories, the year he saw Coinbase go public. The company was valued at more than $65 billion at its direct listing reference price, and even higher in early trading. This explains why 2021 stands out so much compared to the same year, even though Coinbase's current value is modest at $37 billion.

Stocks vs. Tokenomics

From a capital perspective, have While there has been one high-profile venture-backed crypto exit in recent years (Coinbase), all other Web3 exits measured using traditional methods are at best rounding errors.

However, in the case of cryptocurrencies, exits are primarily split between M&A and IPOs on the one hand, and token launches on the other, said Vance Spencer, co-founder of Framework Ventures. “The first is that the relatively low $1 billion exit number is a bit misleading, as it is not the main way VCs obtain liquidity in cryptocurrencies.”

“The majority of liquidity events in crypto VC are driven by tokens, which are probably much harder to assess holistically,” Spencer said. “We do not believe that declines in these metrics are evidence that VCs are finding it more difficult to obtain liquidity.”

“Year after year, we move away from the 'traditional VC exit model' to token-driven liquidity events where decentralization, public building, and community adoption are paramount to successful return to all stakeholders. We've seen an evolution in our approach,” said Brian Mahoney, vice president of business development at venture-focused studio Thesis.

But some investors believe this shows how the market is changing and how important it is to hold on to your investments with conviction (or HODL) while weathering a lack of exits. ing.

do not worry

While it is important that investors see returns from more mature investments, some companies are doubling down on support for early-stage projects.

For example, one of Ryze Labs' early investments in Solana is performing well thanks to its performance over the past year, said Thomas Tan, the company's vice president of investments. “Our experience during the bear market taught us that we need to rise above the current situation by resolutely supporting innovative ideas that have the potential to redefine the future of blockchain technology,” Tan said. Told.

Frameworks' Spencer said investors also recognized that such an exit could take years. “Smart VCs bought in 2022 and 2023, but now the smarter investor class is waiting for new all-time highs before thinking about exit opportunities,” he said. said. “We are known for being more long-term oriented, especially in our venture investments, and we believe that mindset positions us well for the next cycle.”

As the venture landscape focuses on 2024 and crypto market caps continue to expand, there remains cautious optimism and a desire to maintain seemingly strong bets in the space.



Source link

Share. Facebook Twitter Pinterest LinkedIn Tumblr Email

Related Posts

North Korean spies pretending to be remote workers have invaded hundreds of businesses, CloudStrike says

August 4, 2025

Telegram's Crypto Wallet will be released in the US

July 22, 2025

Indian Crypto ExchangeCoindCX confirms $44 million stolen during hack

July 21, 2025

North Korean hackers blamed record-breaking spikes in 2025

July 17, 2025

Bitcoin surpasses $118K at the second highest high in 24 hours

July 11, 2025

Vitalik Buterin reserves for Sam Altman's global project

June 28, 2025

Leave A Reply Cancel Reply

Top Reviews
Editors Picks

7 days left: Founders and VCs save over $300 on all stage passes

March 24, 2025

AI chip startup Furiosaai reportedly rejecting $800 million acquisition offer from Meta

March 24, 2025

20 Hottest Open Source Startups of 2024

March 22, 2025

Andrill may build a weapons factory in the UK

March 21, 2025
About Us
About Us

Welcome to Tech Brunch, your go-to destination for cutting-edge insights, news, and analysis in the fields of Artificial Intelligence (AI), Cryptocurrency, Technology, and Startups. At Tech Brunch, we are passionate about exploring the latest trends, innovations, and developments shaping the future of these dynamic industries.

Our Picks

Automaker web portal security flaws

August 11, 2025

After researchers masked prolific SMS scammers, new operations emerged as a result

August 10, 2025

Simple little apps that can be replaced by RIP, Microsoft lenses, and AI

August 8, 2025

Subscribe to Updates

Subscribe to our newsletter and never miss our latest news

Subscribe my Newsletter for New Posts & tips Let's stay updated!

© 2025 TechBrunch. Designed by TechBrunch.
  • Home
  • About Tech Brunch
  • Advertise with Tech Brunch
  • Contact us
  • DMCA Notice
  • Privacy Policy
  • Terms of Use

Type above and press Enter to search. Press Esc to cancel.