Crypto.com’s venture arm has scaled back investment activity as the sustainability of the sector’s appreciation in value has become less clear.
Crypto.com Capital, which had $500 million invested in startups in the sector as of January 2022, has reduced its investment activity over the past 18 months, according to a Bloomberg report.
Analysts at Dealroom noted that crypto.com investments have declined compared to previous years, saying the company has closed just four deals since the beginning of 2023. This was significantly more than the 35 transactions in the two years prior to that period.
Crypto.com CEO Kris Marszalek acknowledged the decline in funding activity, saying in comments to Bloomberg that the company is currently trying to “rationalize on this.” there is. Marszalek also noted that the venture firm has made about 70 investments to date, but did not disclose exact numbers.
Despite the overall caution, significant sums have been raised in recent venture capital deals in the industry, Bloomberg notes, noting that crypto.com Capital participated in funding Berachain, a blockchain network run by household name founders. At least $1 billion.
Crypto.com is not the only company to temporarily suspend investment activities in the cryptocurrency market. This is because other companies in the market are also slowing down their investments. For example, venture giant Andreessen Horowitz is turning its attention to cryptocurrency investments for now, with a focus on artificial intelligence.